Government crashes as debt crisis looms

The "government’s twelfth hour" has come, writes Politis, reporting from a Cyprus embroiled in political and financial crisis. On 28 July the government presented its resignation, which had been requested by President Demetris Christofias the previous day. In addition, the paper explains, "the rating agency Moody's downgraded the country by two notches and is expressing concern about the fiscal situation in Cyprus following the explosion at the naval base." The explosion of a munitions stockpile that left 12 people dead on July 11 wiped out the main power station in the country and has cut power output by half. "The fiscal position was already under pressure; now it may affect the development" of the country, Politis notes.