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And so, after only 33 days in the job, Michalis Sarris has resigned as Finance Minister, an action unheard of for Cypriot politicians who cling on to their seats as if for dear life and never contemplate quitting, let alone apologising to anyone for anything.
An able-minded economist and soft-spoken politician (another paradox in the Cyprus vocabulary), Sarris knew what he was getting himself into. After all, he had desperately tried to convince the anti-business, former communist administration that Laiki Bank, which he chaired for about six months, was worth saving, if only he had political backing to find new investors.
Since stepping down last summer he was also one of a handful of sane people who argued in favour of austerity and ensuring the economic (and public debt repayment) was sustainable, just as he had during the days of his previous employer, President Tassos Papadopoulos.
Having returned empty-handed from a last-ditch effort to find support in Russia only days after being sworn-in, many were ready to cast the first stone at the Finance Minister, as if he alone was to blame for all the ills that the economy has suffered in the past five years. Surely, the Central Bank Governor must also shoulder some of the blame having admitted during a parliamentary hearing a fortnight ago that Laiki “was kept on life support” for nine months until the elections in February because the communist regime refused to deal with the problem. Why, then, was the tap from the Emergency Liquidity Assistance funding not closed when Laiki’s shortfall had already reached 4 bln euros last summer?
Sarris has also done the noble thing to conclude talks with the Troika and then step down. By his own admission, he will be investigated by the independent commission that will try to find the causes of our economy’s demise, including the days when Laiki sought a 1.79 bln euro bailout from the state, effectively nationalising the island’s second largest lender.
Perhaps others, too, should consider resigning, maybe even before the week is over, in order for President Anastasiades to appoint talented and crisis-conscious leaders to key posts in public organisations who will rid us of the policies of the past and take us into the future.
