chapter  3
22 Pages

The centre–periphery divide in the Eurocrisis: A theoretical approach

WithANGELOS SEPOS

This chapter explores the planned measures and the mode of implementation suggested by the Troika. At the beginning of July 2012, the Troika visited Cyprus for an initial fact-finding tour. The latter group's aim was to avoid the tough austerity measures that had been announced by the Troika before its first trip to Cyprus at the beginning of July and that were set out in concrete terms in a memorandum sent to the Cypriot government on 25 July. In addition to the measures laid out in the bailout plan, the government of Cyprus presented a bail-in plan that was intended to resolve the crisis of the two major banks and to obtain money through additional measures; this was agreed by the Euro group as well. When the bail-in plan was publicised in mid-March, banks in Cyprus were closed and cash withdrawals from ATMs were limited to avert a bank run.