Conservative Nicos Anastasiades will face leftwing independent in runoff after failing to secure enough support for outright win
Their country's future as a eurozone member hanging in the balance, Cypriots voted on Sunday to elect a new president, with the pro-bailout conservative leader, Nicos Anastasiades, securing the biggest backing with 45.4% of the vote.
Anastasiades is set to face a runoff next week after failing to gain enough support for an outright win. However, he is seen as the overwhelming favourite in that contest, against the communist-backed independent, Stavros Malas, who took 26.9% of the vote.
The vote for Anastasiades and his DISY party is an endorsement of the pro-bailout policies advocated by a man who will face the arduous task of finalising a €17bn (£14.6bn) rescue package with the European Union and the International Monetary Fund to keep the country's economy afloat. Last year Cyprus became the fifth eurozone state to ask for a bailout.
On Sunday 545,000 citizens filed into polling stations to cast ballots in what was seen as the country's most crucial election in recent times.
"Whoever wins will preside over five very difficult years, first negotiating a rescue programme then possibly having to enforce new austerity measures," said Hubert Faustmann, associate professor of history and political science at the University of Nicosia.
No Cypriot election had been as closely watched by the international community. The divided island's economic difficulties – triggered by losses its banking system suffered when Greece restructured its debt – have spurred concerns of a re-eruption of the eurozone crisis just when many had hoped progress in the bloc's fragile periphery had been achieved.
Brussels had not hidden its hope that Anastasiades would win. An advocate of neo-liberal policies who believes in breaking the power of trade unions, the 66-year-old lawyer has promised to reach a speedy agreement with would-be creditors at the EU, the IMF and the European Central Bank.
"Above all else, we must unite forces to counter this economic crisis which unfortunately our homeland has never experienced before," he said after casting his ballot.
The outgoing president, Demetris Christofias, a veteran communist, had balked at the idea of meeting the tough terms foreign lenders had attached to a bailout, including calls to privatise state assets.
Amid fears of Nicosia's debt load becoming unsustainable – the rescue terms would likely push Cypriot debt to as much as 145% of its GDP – Cyprus has faced increased pressure to accept aid from Russia. On the eve of the election Moscow's finance minister, Anton Siluanov, signalled that Russia would prolong the repayment period of a €2.5bn loan made to Cyprus in 2011.
The move was welcomed by the EU commissioner Olli Rehn, who emphasised Moscow's "close economic and financial ties with Cyprus". Russians lured by low taxes keep about €20bn in bank deposits in Cyprus. "It would certainly be helpful if Russia is able and willing to provide a financial contribution," Rehn said at the weekend.
The Mediterranean island has enough funds to get by until April after streamlining the economy and announcing pay, pension and benefit cuts worth about €1bn last year.
No comments:
Post a Comment