The European Commission answer to government and DISY arguments on who is to blame for the destruction of the Cyprus economy.

From the podium of the European Parliament, the then European Commission Vice-President Olli Rehn said: “An oversized banking sector is at the heart of Cyprus’ problems…. Due to the lack of adequate oversight, the two largest banks were allowed to build up excessive risk exposures. It was the problems in these banks that provoked the problems in public finances and the economic recession, and not the opposite.”

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