Statement by President Barroso on Cyprus
"It is extremely important to ensure financial stability because without it Cyprus will probably face a disorderly default this week. Cyprus will need a restart of the real economy", said President Barroso the morning after the Eurogroup had reached an agreement on a programme for Cyprus.
Late on Sunday night, the Eurogroup agreed on a 10 Billion Euro package worth 55% of the GDP of Cyprus. The agreement was preceded by talks at the highest level with the President of Cyprus.
President Barroso said in a statement on Monday that the business model of Cyprus was not viable and could not offer lasting prosperity to the people of Cyprus. Therefore a solution had to be found.
Apart from financial stability, Cyprus will need a restart of the real economy. Therefore President Barroso announced that a Task Force for Cyprus, providing technical assistance to the Cypriot authorities, will be set up.
"We want to alleviate the social consequences of the economic shock by mobilising funds from European Union instruments and by supporting the Cypriot authorities' efforts to restore financial, economic and social stability. We will bring in further expertise to facilitate the emergence of new sources of economic activity. The Commission stands by the Cypriot people", he said.
Furthermore, President Barroso called on Cyprus to show unity and responsibility in the implementation of the agreements reached and on all Member States of the European Union to show solidarity with Cyprus that is facing extraordinary challenges.