German Chancellor Merkel will want a
quick resolution of the Cypriot economic and financial crisis so that a
bailout does not become a domestic political issue ahead of her
reelection bid.
One has to pity German Chancellor Angela Merkel. No
sooner does she succeed in keeping Greece in the euro, after very
protracted negotiations with both the Greeks and the International
Monetary Fund (IMF), than another euro member country, Cyprus, rears its
ugly head. And it does so with economic and financial problems at least
as challenging and as intractable as those in Greece.Resolution of the Cypriot economic and financial crisis ahead of Germany’s September 2013 parliamentary elections will prove to be very difficult for Merkel, since such resolution will almost certainly prove how hollow her assertion has been that official debt reduction in Greece was a special case not to be repeated elsewhere. It will also underline the uncomfortable truth that Greece will not have been the last euro member country to require a multiyear bailout program.
Read more: http://www.american.com/archive/2013/january/angela-merkels-cypriot-headache
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