Marina Economides
In July, the resilience of Cypriot society was tested once again as it faced yet another challenge, underscoring its entrapment in heavy fuel oil. This entrapment translates into an annual fine of €200 million due to emissions. However, it became apparent that an additional economic burden was also looming. The cause of this predicament was the deeply flawed agreement for the Vasilikos terminal. Not only did the deal collapse amid Chinese blackmail, irregularities, and poor management, but it also spiraled into a scandal so significant that it prompted intervention by the European Public Prosecutor's Office. This scandal of the highest order raised pressing questions: Why did the government push for such a problematic agreement? What were the true intentions of those involved, and what were the financial consequences for the state? Most concerning, the revelations about the debacle suggested that once again, certain circles were profiting at the expense of the public, further tarnishing the country’s image.
Despite the political system’s professed shock over last month’s revelations, and despite urgent—but belated—calls for clarity, the truth is that warnings had been issued about the deal's potential fallout. Nicos Anastasiades had received indirect cautionary advice from Brussels before the agreement was signed. Concerns were raised about the awarding of what seemed to be a tailored contract to a company lacking the experience to manage such an ambitious project, as well as about the government's subsequent decision to grant an additional €25 million due to rising steel costs, despite no such provision in the contract.
A country that...has failed to learn that what is immoral is rarely sustainable in the long term. A greedy economic and political elite that persistently undermines the nation's credibility.
These concerns and recommendations were astonishingly ignored. Notably, despite the strong reservations expressed by the Audit Office, the government pressed ahead with the agreement, emphasizing the need for swift completion. This, even though it might result in the loss of €100 million in EU funding, with the government even considering a bond issue as an alternative.
Was this scandalous handling driven by political pressure to secure China’s continued support in the Security Council? Or was it a desperate attempt to escape hefty pollution fines? The prevailing sense was that, following the naturalization scandal, yet another major scandal had been orchestrated, this time centered around the terminal. A scandal that the government either failed to detect in time or chose to conveniently ignore. Ultimately, the terminal debacle dealt the final blow to the Anastasiades administration. The government now faced not only the suspicion that corruption and cronyism had thrived under its watch, but also the perception of complete ineptitude. An administration that for years boasted of its governance skills and its ability to execute grand projects. A government that promised growth but, at best, made poor political judgments, falling prey to the blackmail of a consortium and, in the end, burdening the citizens and trapping the country in outdated fuel dependencies.
Unfortunately, this issue extends beyond a government that has completed its term. The President has rightly admitted that the project should never have been awarded to the company in question. DISY is correctly calling for a full investigation, ready to confront the vested interests. But what would they have done if an independent institution hadn’t intervened? Until recently, the President was peddling the narrative that everything was on track during his visits to the site, while the party’s leadership attempted to silence the auditor general under the pretext that his revelations about the scandal would harm the state.
The terminal agreement serves as a stark reflection of why Cyprus continues to falter. A country that, despite numerous scandals, has failed to learn that what is immoral is rarely sustainable in the long term. A greedy economic and political elite that persistently undermines the nation's credibility. An ineffective state with crippled institutions. The terminal scandal may not be the first major setback, but it is the coup de grâce, demonstrating why Cyprus has transitioned from a promising state to a textbook example of a failed state, a status it reaffirms daily.
economidoum@kathimerini.com.cy
[This op-ed was translated by Shemaine Bushnell Kyriakides]
