Research Seminar by Prof. A. Theophanous on “The Political Economy of the Eurozone and the Case of Cyprus”

The Department of European Studies and International Relations would like to invite you to a Research Seminar on: The Political Economy of the Eurozone and the Case of Cyprus by Andreas TheophanousProfessor of Political Economy, University of Nicosia Wednesday, 5 December 2012, 11:30-13:00 Room: M115 Conference Room, Millennium Building (1st floor), University of Nicosia Seminar Coordinator: Craig Webster Abstract The Political Economy of the Eurozone and the Case of CyprusThe EU is facing its most serious economic crisis since the creation of the Common Market in the 1950s. The current deep and persistent Eurozone crisis threatens the main pillars of the foundations of the Economic and Monetary Union (EMU). Even before the crisis several economists had put forward the view that the EMU also required a fiscal union and a minimum level of political integration for its smooth functioning. It is essential to understand the broader context of the crisis and how to take the debate on the future of Europe forward. The economic policies pursued so far to address the excessive fiscal deficits and high public debts in several countries of the Eurozone have, not surprisingly, been procyclical.As demonstrated by the Greek experience, a draconian fiscal austerity policy cannot be expected to resolve the debt crisis and the restructuring of the economy. Cyprus, which was once referred to as a model case study for its economic record, now faces serious structural problems. Following the initial agreement on a memorandum of understanding it is expected that Cyprus will soon formally sign an economic adjustment program with the Troika. The challenge for Cyprus is to avoid the Greek predicament and to get out of the crisis relatively quickly.  R.S.V.P. Tel: 22841600, Email: cceia@unic.ac.cy