The European Commission has decided, after a suggestion submitted by its President Jose Manuel Barosso, to set up a Task Force for Cyprus with a view to  help the Cypriot authorities restore financial and social stability on the island.

A European Commission spokesperson said that the Commissioners were informed during a meeting on Wednesday about the situation and discussed Eurogroup decisions on Cyprus.

The Commissioner adopted Barosso’s proposal to set up a Task Force that will assist Cypriot authorities in their effort to ease repercussions and bring the economy back on the track.

Barroso had said in a statement on Monday that the business model of Cyprus was not viable and could not offer lasting prosperity to the people of Cyprus and therefore a solution had to be found.

“We want to alleviate the social consequences of the economic shock by mobilising funds from European Union instruments and by supporting the Cypriot authorities` efforts to restore financial, economic and social stability. We will bring in further expertise to facilitate the emergence of new sources of economic activity. The Commission stands by the Cypriot people”, he said.

Particular emphasis will be given to employment and growth. The Task Force will submit progress reports to the Cypriot authorities and the Commission every two months. It will be coordinated by Commissioner Olli Rehn.