Angelos Tzortzinis for The New York Times
By LIZ ALDERMAN
NICOSIA, Cyprus — Like a lot of Cypriots, Charalambos Alexandrou helped
build his country into a modern Mediterranean paradise.
As money flowed into the island’s banks after Cyprus joined the European
Union in 2004, the country embarked on a construction boom. He landed a
lucrative roofing job, at first for sleek homes and shops, and then for
the mansions that took over olive groves and vineyards. The demand for
his skills only accelerated after the country was admitted into the euro
currency union in 2008.
But in the last two weeks, he has watched his finances slide as the
foundations of his country crumble during the collapse of the banking
system. The severe terms of the country’s 10 billion euro ($13 billion)
international bailout have tied up everyone’s cash, forced huge losses
on the strictest savers and are expected to hasten a deep recession that
may take years to overcome.
Mr. Alexandrou, 30, says he understands that the crisis in Cyprus was
brought on by bank mismanagement and even financial corruption.
What most pains him and many others here, though, is that central
bankers and other international financial officials have, by letting
their country’s 860,000 citizens suffer for the sins of a powerful few,
shattered Cyprus’s solidarity with the European Union.
Cyprus is no poor cousin to the European Union, they say. Instead, it is
a country with a small, but remarkably multilingual, solidly educated
and until now comfortably middle-class population — people who consider
themselves precisely the type of Europeans the rest of the union should
be proud to have anchor its border with the Middle East.
Many Cypriots now feel great shock and anger at what they consider their economic excommunication.
“Not everyone here is Russian, or making money illegally, or laundering
money,” Mr. Alexandrou said. “Most of us are normal people living normal
lives.”
He sat, face grim, with his wife, Aliki, and their energetic
18-month-old son, Alexandros, in the living room of their modern white
house on the outskirts of Nicosia. “Now we see that nothing good has
come from European solidarity,” he said.
For Cypriots, joining the European Union and adopting the euro were
significant achievements. After decades of internal strife and foreign
occupation, Cyprus regarded acceptance into the European family as a
promise of stability and the chance to forge a more modern economy.
During the boom times, Mr. Alexandrou acknowledged, Cyprus, like many
European countries, lived beyond its means. But while it is time for the
country to pay for its follies, he said, “there is the sense that no
one in Europe really cares what happens to us.”
Some of his fellow Cypriots have vented their resentment in protests,
shouting anti-German epithets and burning the European Union flag.
Cypriots are relatively stoic compared with their more fiery brethren in
bailed-out Greece, but there is deep-seated anger over the perception
that Europe is kicking Cyprus while it is down.
“We made sacrifices to integrate Cyprus into the great European family,”
Antigoni Papadopoulou, a member of Parliament, said last week as Cyprus
tried to negotiate its bailout. But “there is a real lack of European
solidarity,” she said.
With encouragement and subsidies from Brussels, Cyprus moved away from
an agricultural economy toward an emphasis on services that support
business, finance and communications. Manufacturing was also allowed to
lapse, with locally made goods — whether shoes or pharmaceuticals — all
but disappearing.
Cyprus’s leaders seized the opportunity to recast the island as a
strategic hub at the crossroads of Europe, the Middle East and Asia.
Their ambition was to emulate the wealthy, discreet European money
havens of Luxembourg and Switzerland, thus securing a comfortable way of
life for their people.
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