Cyprus Airways is facing bankruptcy thanks to EU legislation which prohibits State aid for companies!
More than 300 Cyprus Airways staff face the sack next year unless Cyprus, like many other EU satellite States (but not Britain of course which always plays cricket) is willing to stick two fingers up to ruinous EU legislation.
Cyprus Airways began in 1947 and at its peak a few years ago, carried more than a million European passengers a year. It understandably plays an important part in the economy and morale of Cyprus.
However the Euroland recession has caused a collapse in tourism and Cyprus Airways losses are expected to reach €30 million this year.
Ironically next year’s Labour Ministry budget of €30 million is earmarked “immigration and asylum”, which has outraged Cypriots already facing damaging immigration problems of their own, partly due to cheap EU labour.
In a free market the Cyprus Airways problem would be solved by the Cypriot government stepping in with a temporary rescue package. But the EU is an extremely distorted globalist cartel, where the big fish freely devour the smaller fishes (in whichever State they may flounder)!
Last week Cyprus was forced to crawl on its knees, cap in hand to the EU, in a truly pathetic and desperate bid to beg for charity. Now the iron hand of the totalitarian EU monster has Cyprus Airways well and truly by the throat.
And that brings me to the point of this lethal EU legislation. The aim is to facilitate bankruptcy. It also lets predator companies step in and buy up ailing companies at a song, build them back up and extend their power and control of prices when the trouble is over.
Alas under such EU legislation the Cypriot government is powerless to intervene to help save one of its most important companies.
Finance Minister Charilaos Stavrakis admitted,
“There is a clear policy from Brussels that the State can no longer support or fund loss-making State, or other, companies.”
“The EC is now checking what is going on with the two airlines, so we have to follow EU procedures and laws. Cyprus has to be careful and be sure that any moves will benefit the airline.”
I fear Cyprus will go rapidly down the EU pan, just like Britain, unless it leaves the Euro and indeed the EU itself.