With the off-shore economy and the natural gas reserves (that Russia so wanted to get a hold off), you have now the perfect moment to leave the EU once and for all. Print your coin, don't tax the bank accounts, explore your gas reserves, and show the middle finger to greedy Germany! I wish Portugal could realise as well that we have a huge coast that we SHOULD BE exploring, as well as big metal reserves, and material for nuclear plants, as well as gold,silver,and rare metals, and plenty of soil to cultivate for our own food. All we had to import would be gas and petrol. I always was for an European union, but this is coming to a senseless union. Germany and France both grew A LOT on the EURO while every other country started to sink and now it's being bought at insane low prices. Wake up Europeans!
Here are the solutions: with time trust will return and you will be able to grow your offshore financial industry again, lower your taxes, exploit your newly found gas fields and attract tourism. These are just a few sectors that would make Cyprus sustainable and prosperous outside the European Union. Why would you want to be part of this sinking ship, at the end of the day it's every man for himself as they have just proven.
Yes, obviously the Euro is not benefiting the country. They will not bail them out without forcing the government to raid their people's bank accounts, so they should leave. If they leave, then they can create their own Fed like we have in the US and just print their own money to prop up their own economy.
Cyprus is not getting assistance from the people behind the Euro for their financial problems, and it doesn't seem like that situation will change. If being a part of the Euro community isn't going to help Cyprus in their time of need, it is time to change tracks before things get worse.
A small country needs the support of large nations. Loyalty is the most important thing you can have in any situation. Unless the euro causes Cyprus true harm then the country should contain its doubt and move forward knowing that turn to receive a "helping hand" will come in due time.
While Cyprus is in a bit of a financial bind as of late, and as such is being asked to make some pretty substantial concessions, I think that they would be much worse off if they decided to leave the Euro and strike out on their own, that's for sure.
Cyprus is a small country with a small economy. It benefits from being part of the much larger European community. Being part of the Euro helps with some of its problems and contributes to its economic well being. Isolating itself by leaving the Euro would not be a very good idea.