ABSTRACT
This chapter explains the crisis that did significant damage to the three main southern member states of the European Union. It shows that those countries were not the only ones to suffer. But their reason for fearing what austerity will do to their country is important: they see nothing but social and economic decline in Southern Europe, with the Italian and Spanish crises right on their borders. They fear the consequences of similar social unrest and political turmoil in their own country. Cyprus says it has begun talks with officials from the European Union and the International Monetary Fund to gauge how much money it needs from the EU bailout fund for its troubled banks. Cyprus has very close ties to Greece. What is commonly called 'Cyprus' is really the western part of the island. The Mediterranean island Cyprus is split in two parts, separated by a UN buffer zone.
