Skip to main content

    It is hard to read the current media on the economic crisis in Cyprus as it is defined in the absence of history.  Articles like that by Peter Spiegel, Kerin Hope and Quentin Peel, "A poor diagnosis, a bitter pill," The Financial Times, March 23, 2013, are focused on the present and that is understandable.  Yet it is clear that the past is a significant source of understanding for the present dilemma the EU leadership finds itself in over the banking collapse.  
    We should recall that even before independence from Britain conflict exploded between Greek and Turkish Cypriots after violent attacked by the Greek Cypriot terrorist organization, EOKA (see Loizos, Peter, "Intercommunal killing in Cyprus," Man, v. 23, n. 4, 1988:639-653).  In the early years after independence, 1963-1968, Greeks Cypriots (and via EOKA) used violence in an attempt to force union with Greece.  On July 14 1974 Greek Cypriot separatists with the help of the Greek army overthrew the coalition government of Greek and Turkish Cypriots and precipitated an invasion of the island by Turkish troops, given the history of murders of Turkish Cypriots by separatists.  

     In the immediate terms of ceasefire and the creation of a line of separation, a stasis was created between a once integrated Cyprus and ethnic Turks and Greeks fled to opposite sides of the island.  A Greek Cypriot "state" was formed of the rump southern part of the island and since 1975 has come to function as a rouge state, with low taxation, little oversight in tax evasion schemes and as a money laundering center.  It functioned as a stop over for Serbian arms purchases in the Yugoslav civil war.  

  Black money money from Russia and elsewhere has used Cypriot banks as Adam Taylor    notes in his article on Sergei Magnitsky in Business Insider published on March 22nd, 2013 (see:  Documentation of money laundering in Cyprus has been published by the German magazine Spiegel on November 6th 2012 (see:  An article (3/19/13) that interviewed several experts in money laundering describes how difficult the situation is to study (  A article published on March 23, 2013 shows that examination of Cypriot banks alone with not come close to trace the extent of identification money laundering there, rather the worldwide elimination of limited liability corporations that hide ownership and wealth transfers are needed (

    Cyprus has lived on property speculation, tourism, black market trading and money laundering since independence.  Greek Cypriot separatists have prevented a rational resolution of the island's division and the EU supported their racist and nationalist actions by admitting Cyprus before it had met even the rudiments of compliance with financial standards and law.  Claims by the former Finance Minister, Takis Klerides that Cyprus was being thrown out of the EU family are ludicrous given the "special" adoption they experienced to join the flock.  The EU should take one of three approaches to deal with the current crisis and the main focus should not be the financial obligations to an EU country, but the continued existence of a criminal situation that dominates the island and has benefited a few who have made a living avoiding international law.

1. Route of least resistance:  Push Cyprus out of EU, let the Russians loot the banks before and then give the island to the Turks to administer with a local elected parliament.  The criminals and the racist Cypriot separatists would be unhappy but the island would no longer be a seat of international crime.

2. Ethical route:  EU seizes banks and all foreign deposits and forces depositors to justify all money in accounts as legal income. Dissolve government and transfer control to the Turks as in #1.  This would not make the Russians or the criminals and Cypriot separatists happy but is the responsible thing to do.

3. EU seizes banks, dissolves government, a plebiscite is held on federalism with Turkey or a permanent division of the island between Greece and Turkey.  This would also accomplish all in #2.

Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags


More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

  •  Which of your three proposed solutions (0+ / 0-)

    do you favor?

  •  Nothing like Turkish Racism (2+ / 0-)
    Recommended by:
    kaliope, upstate NY

    to expose Greek racism. Here is an example of a Greek Cypriot racists:

  •  Cyprus+Russian money=money laundering? (1+ / 0-)
    Recommended by:

       While much of the MSM is pushing the meme, it may be just that - a meme.  
         Over at Naked Capitalism - there are several articles that say NOT SO.  
          Is Cyprus different than any other country that has offered tax reductions for countries to bank there?  NO
          Is Cyprus more or less transparent than other countries?  OECD says that Cyprus meets more standards than more than other countries.

    •  "Cyprus has lived on (0+ / 0-)

      property speculation, tourism, black market trading and money laundering since independence."

      The same could be said of London since the Big Bang in '86.

      Courage is contagious. - Daniel Ellsberg

      by semiot on Sun Mar 24, 2013 at 11:25:55 AM PDT

      [ Parent ]

    •  Ifyou (0+ / 0-)

      took the time to read this article (, or the OECD documents, you would find that there is little to back up your assertion.  As for making comparisons concerning how transparent other countries are, like England, this is always a problem, see Richard Brooks new book, The Great Tax Robbery, 2013, or my book The Anthropology of the Credit Crisis, 2012, where I have a chapter on international tax avoidance and black market wealth transfer.

  •  This is a bunch of propaganda crap (0+ / 0-)

    by someone with an agenda, and I've recognized this sort of propaganda over the years the way it elides the murders in the 1950s by Turkish Cypriots, the way false flag bombings were sent up by the likes of Rauf Denktash, the fact that the coup was overthrown in 3 days and a month later, Turkey left the negotiating table in a brazen move and proceeded to ethnically cleanse the north of the island, killing tens of thousands.

    Basically this diary is an apologia for mass murder.

    Well done.

    There are two kinds of people in this world. The kind who divide the world into two kinds of people, and the kind who don't.

    by upstate NY on Sun Mar 24, 2013 at 08:53:13 PM PDT

    •  Too (0+ / 0-)

      bad you produce no evidence to support your assertion or you might change some minds.  The evidence is, however, against you and you nicely ignore my source.

      •  Here is your evidence (0+ / 0-)

        Second Turkish invasion, 14–16 August 1974

        The Turkish Foreign Minister Turan Güneş had said to the Prime Minister Bülent Ecevit, When I say "Ayşe is going on vacation" (Turkish: "Ayşe Tatile Çıksın"[dn 1]), it will mean that our armed forces are ready to go into action. Even if the telephone line is tapped, that would rouse no suspicion.[51] An hour and a half after the conference broke up, Turan Güneş called Ecevit and said the code phrase. On 14 August Turkey launched its "Second Peace Operation", to gain control of 40 percent of Cyprus. Britain's then foreign secretary (later prime minister) James Callaghan, later disclosed that U.S. Secretary of State Henry Kissinger "vetoed" at least one British military action to pre-empt the Turkish landing. Turkish troops rapidly occupied even more than was asked for at Geneva.[citation needed] 40% of the land came under Turkish occupation reaching as far south as the Louroujina Salient. In the process, many Greek Cypriots became refugees. The Cypriot government estimates their numbers at about 200,000,[52] with other sources stating 140,000 to 160,000.[53] Many of them were forced out of their homes by the Turkish army which has been acknowledged by the European Court of Human Rights in four interstate applications between Cyprus and Turkey as well as in other cases as in the case of Loizidou vs Turkey), the rest fleeing at the word of the approaching Turkish army. The ceasefire line from 1974 today separates the two communities on the island, and is commonly referred to as the Green Line.

        After the conflict, Cypriot representatives and the United Nations consented to the transfer of the remainder of the 51,000 Turkish Cypriots that had not left their homes in the south to settle in the north, if they wished to do so.

        The United Nations Security Council has challenged the legality of Turkey's action, because Article Four of the Treaty of Guarantee gives the right to guarantors to take action with the sole aim of re-establishing the state of affairs.[54] The aftermath of Turkey's invasion, however, did not safeguard the Republic's sovereignty and territorial integrity, but had the opposite effect: the de facto partition of the Republic and the creation of a separate political entity in the north. On 13 February 1975, Turkey declared the occupied areas of the Republic of Cyprus to be a "Federated Turkish State", to the universal condemnation of the international community (see UN Security Council Resolution 367(1975)).[55] The United Nations recognizes the sovereignty of the Republic of Cyprus according to the terms of its independence in 1960. The conflict continues to affect Turkey's relations with Cyprus, Greece, and the European Union.

        The coup was put down on July 19th.
        Turkey's big sweep through Cyprus and its ethnic cleansing took place after August 14th, weeks after the coup was over and democracy was restored.

        There is a very good reason why the UN sanctioned Turkey for an illegal act, and why there were bans on relations with Turkey in the USA and UK and many countries all over the world.

        You're on a propaganda mission here trying to whitewash ethnic cleansing.

        There are two kinds of people in this world. The kind who divide the world into two kinds of people, and the kind who don't.

        by upstate NY on Tue Mar 26, 2013 at 11:47:56 AM PDT

        [ Parent ]

        •  Nothing (0+ / 0-)

          in your quote that defends your assertions.  See the discussions on the Wiki pages that dispute your source:

          The neutrality of this article is disputed. Relevant discussion may be found on the talk page. Please do not remove this message until the dispute is resolved. (February 2011)

          Talk about propaganda.

          •  Nothing supports my conclusions, eh? (0+ / 0-)

            So you are denying that the thrust of the invasion took place in mid-August?

            Delusions? Or Propoaganda?

            That the coup was overthrown in mid-July?

            Guess why the international community aligned AGAINST Turkey...

            Because it didn't believe the horseshit peddled by people like you.

            There are two kinds of people in this world. The kind who divide the world into two kinds of people, and the kind who don't.

            by upstate NY on Wed Mar 27, 2013 at 07:48:28 AM PDT

            [ Parent ]

            •  THose (0+ / 0-)

              are your delusional thoughts.  Read the article I cited that was peer reviewed in a scholarly journal instead of your friends' opinions.

              •  You are a denier of ethnic cleansing (0+ / 0-)

                No one has any doubts except you as to when the August invasion took place. That you would deny it shows how bankrupt your position is.

                There are two kinds of people in this world. The kind who divide the world into two kinds of people, and the kind who don't.

                by upstate NY on Thu Mar 28, 2013 at 08:40:31 AM PDT

                [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site