party coalition quit the government Wednesday, making agreement on vital economic reforms more difficult and potentially complicating reunification talks. “It's disastrous,” said economist Fiona Mullen. “In order to get agreement on fiscal reform you need at least two parties to get it through parliament. This makes consensus a lot less likely.” The centrist Democratic Party, coalition partners with the Communist AKEL since 2008, said they were leaving government after exhausting all room for further cooperation. “It is clear that the dialogue has been terminated and the Democratic Party ceases to be in cooperation with the President of the Republic,” said party leader Marios Garoyan. Cyprus has a presidential system of government and the pullout is not seen endangering the survival of incumbent President Demetris Christofias, whose term expires in 2013. But although Cyprus has a strong presidential system, it largely depends on parliament, where Christofias's party does not have a majority, to pass economic reforms urgently needed to tackle an energy crisis threatening to tip the island into financial meltdown. The pullout also weakens Christofias in peace talks on Cyprus, where the UN are attempting to broker a reunification deal between his Greek Cypriot side and estranged Turkish Cypriots. Any deal has to be approved in a referendum. Greek Cypriot approval for a deal, already in doubt, could be further complicated with a president weakened by the desertion of his political allies. Coalition squabbling came into sharp focus after Cyprus was hit by a massive munitions blast in July which destroyed the island's largest power station.
