In accordance with the “troika” bailout plan，Cyprus continued to push forward banking sector restructuring，fiscal austerity measures and structural reforms in 2014. Its domestic political situation was relatively stable. Economic recession turned out to be less acute than anticipated. Various reform measures went ahead smoothly and the banking system entered a phase of stable development. The north-south peace talks had been resumed. But some of the core differences between the Serbs and the Turks were unlikely to be solved in the short term. <<