A Diary of the Euro Crisis in Cyprus

© SpringerLessons for Bank Recovery and Resolution
Panicos Demetriades
17 October 2017
£29.99 | $39.99 | Hardcover | 978-3-319-62222-4


This book tells the story of the euro crisis in Cyprus from the inside. Written by the former Governor of the Central Bank of Cyprus, Panicos Demetriades, who was in office during this turbulent period, it shows how the crisis unravelled through a series of key events that occurred during his tenure.

Written in chronological order, and broadly based on the author’s personal diary, starting from his first day in office, this book presents a wealth of personal witness statements, including records of noteworthy telephone conversations, informal meetings and other milestones.

A Diary of the Euro Crisis in Cyprus tells the story of how in March 2013 Cyprus came close to becoming the first country to leave the euro. It is a story in which history, finance, law and politics combine to create an unprecedented existential crisis for the euro. A story of two banks which, thanks to the influx of Russian money, became too big to fail, too big to save and too big to regulate. A story in which the euro was saved from unravelling through a last-minute agreement, largely dictated by Germany and the IMF, which involved imposing heavy losses on uninsured depositors, many of whom were Russian and Ukrainian oligarchs.

Charles A.E. Goodhart (London School of Economics) describes it as “a vivid and dramatic story” and “a ‘must read’ for anyone interested in the euro-crisis of 2012-13 particularly, and in European recent political history more broadly”.

Barry Eichengreen (University of California, Berkeley) says that the book “tells the story of the crisis and political constraints on its resolution with verve and drama” and describes it as “essential reading for crisis mavens”.

Paul De-Grauwe (London School of Economics) says: “The banking crisis that erupted in Cyprus in 2013 shook the Eurozone and led to a drama with many ramifications. As the Governor of the Central Bank of Cyprus, Panicos Demetriades was both an actor and an observer of the unfolding drama. Nobody is better placed to tell us the gripping story of the Cypriot banking crisis.”

Peter Bofinger (German Council of Economic Experts) describes it as: “A fascinating book—very well written and full of unique insights. It reads like an economic thriller.”

Megan Greene (Manulife Asset Management) says: “Demetriades weaves together history, politics, economics and finance to explain how his country was plunged into crisis and how he tried to help steer it back out. It is the story of a tiny island, but also of the dawn of banking union in the Eurozone. A must-read for anyone who has an interest in where Europe goes from here.”

Olli Rehn (former European Commissioner for Economic and Monetary Affairs) says: “The Cyprus banking crisis shook the country and was a major after-shock in the Eurozone crisis. The story of its crisis management as an interplay of politics and economics needs to be told. As the former Governor's account, this book is at the same time a most intense political thriller and an insightful economic analysis.”




About the author

Panicos Demetriades served as Governor of the Central Bank of Cyprus and was a member of the Governing Council of the European Central Bank from May 2012 until stepping down from the governorship in Cyprus in April 2014, a move that The Economist described as ‘a blow to central bank independence’. He returned to his academic position in the UK as Professor of Financial Economics at the University of Leicester shortly after. Professor Demetriades continues to speak regularly around the world on his experience as Governor of the Central Bank of Cyprus during one of Europe’s worst financial crises. He holds a PhD in Economics from the University of Cambridge, UK, and BA and MA degrees, also in Economics, from the University of Essex, UK. His academic career spans a period of 25 years, the last 15 of which have been with the University of Leicester. He has published extensively in academic journals and books, primarily in the area of financial development. According to RePEc (Research Papers in Economics) he is among the most widely read economics authors in the world. He has also published in popular and specialist media, such as VoxEU and the Financial Times. He is frequently a guest on TV and radio programmes worldwide in relation to the euro crisis, Brexit and other economic issues. Professor Demetriades is a Fellow of the Academy of Social Sciences of the United Kingdom.

For more information or to get in touch with the author please contact:
Rebecca Krahenbuhl – Communications Manager, Palgrave Macmillan
rebecca.krahenbuhl@palgrave.com, +44 020 7014 6634