World Bulletin/News Desk
Cyprus may have to consider an exit from the euro zone if international lenders impose excessively painful austerity measures as a condition for a bailout, the head of its ruling party said on Friday.
Meanwhile, Cyprus ruled out any question of it abandoning the euro zone, hours after the principal backer of its government said the option should be considered if bailout conditions were too tough.
"For the government and the President of the Republic there is absolutely no issue of exiting either the euro zone or the European Union," government spokesman Stefanos Stefanou said in a statement.
Andros Kyprianou, whose AKEL party is the primary backer of the left-wing government led by President Demetris Christofias, told Cypriot online news site 24h.com.cy such a strategy could be considered if austerity becomes unbearable.
"If the troika insists on very painful measures to remain in the euro zone, should we dig our heels in and say we won't leave the euro zone because this is important, and (that) we will remain, however painful the measures may be?" Kyprianou said in a video interview posted on the website.
His party is now trailing in opinion polls behind the right-wing Democratic Rally party.
In a second video clip, asked if his comments clearly implied Cyprus should consider leaving the euro zone, Kyprianou replied: "I am certainly leaving this open. I am not pre-judging what we will do, but what I am saying is these issues must be discussed very seriously if we want to serve the interests of the Cypriot people."
Cyprus became the fifth country in the 17 nation euro zone to seek some form of international aid in June, when its banks needed state help to cover massive losses on their exposures in debt-crippled Greece.
It adopted the euro in 2008, four years after joining the European Union. The island now holds the rotating six-month EU presidency.
Leaked documents show the troika - lenders from the IMF, the European Central Bank and the European Commission - have demanded pay cuts in the public sector, privatisations and pension reforms, though negotiations with Cyprus are inconclusive as Nicosia prepares counter-proposals.
But the troika's suggestions will not go down well with a highly-unionised public sector, particularly ahead of a general election scheduled for February 2013.
Christofias, who once led AKEL, has said he does not intend to seek re-election and the party is backing an independent candidate in the race.
Kyprianou, whose party had tried to shake off perceptions in the past that it was euro sceptic, acknowledged that AKEL had "reservations" about the island joining the bloc.
They were overcome, he said, on the premise that membership would be a catalyst for solving the island's long-running ethnic division, and that it would safeguard interests of "workers."
A solution to Cyprus's division has not transpired yet, he said, and said there were also "negative developments" as far as workers' rights were concerned.
Most analysts predict president Mario Draghi will extend an 80-billion-euro ($86-billion) per month bond-buying scheme beyond the current March deadline at his press conference.
A record-setting wave of Chinese investment abroad has fuelled concern in Beijing over capital flight, reckless spending overseas, and the yuan's fall against the US dollar.
The deal is part of a broader privatisation drive and comes despite Moscow being mired in Western sanctions over the crisis in Ukraine that have played a major part in plunging the country into recession.
Germany’s ambassador to Ankara says German companies operating in Turkey should think about tomorrow
After months of disagreement, OPEC members last week hammered out a deal to cut oil output for the first time in eight years.
Ali Shareef al-Emadi predicted growth of 3.4 percent in 2017, in line with an International Monetary Fund estimate and up from a projected 3.2 percent this year.
"Many citizens in advanced economies are facing heightened uncertainty, lamenting a loss of control and losing trust in the system," Carney said in a speech at Liverpool's John Moores University.
European stock markets are also set for a weak start, with Italy underperforming as investors brace for turbulence and political crisis in the euro zone's heavily indebted third-largest economy.
The euro tumbled on Monday after Italian Prime Minister Matteo Renzi said he would resign as he conceded defeat in a referendum over his plan to reform the constitution
Rouhani's 2017-2018 budget is based on oil prices of $50 per barrel, up from $40 last year, with a focus on unemployment, water resources, railways and the environment.
Turkish parliament has already ratified the deal on construction of ‘TurkStream’ natural gas pipeline
The September rate was revised to 9.9 percent from the 10 percent first given last month.
Many analysts had expected the producers' cartel to fail to reach a deal as major players like Iran, Iraq and Saudi Arabia remained divided ahead of the meeting.
The report, which collects views of economists, business contacts and others in the 12 Federal Reserve districts in preparation for the monetary policy meeting next month, noted improved retail sales and home construction in most regions.
If the cartel does not reach a deal to cut output, prices could fall below $40 a barrel