Cyprus: The troubled leader...
Cyprus has taken up the presiding responsibilities of the European Union on Sunday i.e. 1st of June. This rotating presidency, changes among the E.U countries, once in six months. This is the first time Cyprus was elected to this post. The irony of this story lies in the fact that, the officials from the European commission, IMF and the European central bank are expected to arrive in Nicosia, the capital city of Cyprus on the very next day i.e. 2nd of June, in order to make an assessment of the banking system of Cyprus and as well discuss the terms of bailout for this trouble ridden Mediterranean island nation.
Cyprus is the fifth European Union country to seek bailout from the fellow nations. The other four countries were –Greece, Ireland, Portugal and Spain. The reason for this fallout on the Cyprus economy is the, heavy exposure of the Cypriot banks, to the Greece bonds. The failure of Greece to fulfil its bond obligations to the fullest, has led to heavy losses in the banking systems of many of the E.U countries.
Thus as of now 5 amongst the 27 E.U nations have sought bailout from the rest of the countries. It is a known fact that even India contributed 10 Billion Euros for aiding the troubled Euro Zone countries. We may not be able to guess out as to, how this plight of the E.U does end up? But one thing for sure is true as of now; an ailing E.U has its resonance in its failing leadership.