Ex-Cyprus central bank chief says euro crisis will flare up after German elections

Athanasios Orphanides, former chief at Cyprus' central bank, has said that the island economy was destroyed by delays in finalising the bailout package it received.

Cyprus has seen its biggest industry - banking - wiped out with capital controls overstaying their welcome. While introduced as a temporary measure months ago, they have not yet been removed.

Many were worried that capital controls wouldn't be loosened and pointed to Iceland as an example. Earlier this week its central bank said that "the outlook for output growth over the next two years has deteriorated" and so controls are expected to remain in place there - despite having been introduced half a decade ago.

Orphanides warned that the euro crisis may now flare up again after German elections. German politicians will presently be trying to cool fears that the country will be forced to bail out its insolvent neighbours as elections loom.