The solution to the Cyprus problem would not only be a huge benefit to the welfare of the Cypriot people but would lead to a massive economic boost, American economist Jeffrey Sachs said on Wednesday.

He said Cyprus was being affected by other conflicts in the region and the increasing “warmongering” coming from the EU leadership. Sachs was addressing the fourth Akel economic forum in Nicosia via video call,

He expressed hope that the recent change in Turkish Cypriot leadership would mean a prospect for a solution to the Cyprus problem and highlighted the island’s regional role in shaping a green, sustainable future.

In this context Sachs, a strong supporter of the UN’s sustainable development goals, urged the Cyprus government to abandon gas exploration and focus on green energy.

“Everyone is short-sighted and extracting more gas is the last thing the region needs. The region needs to turn to renewable energy sources along with the entire world,” he added.

Wars and conflicts had become a “distraction” from the environmental crisis, he said.

Europe, he added was currently being led by “war profiteers” and that Cyprus was “paying the price for this.”

“Europe is, I’m sorry to say, being led in a very bad way at the moment. It’s being led by people who are determined to pursue more conflicts and not solve regional problems.”

The war in Ukraine would destroy Europe’s finances and economic reputation in the world, Sachs added.

He called on EU Commission president Ursula von der Leyen along with the German, British and French leaders “warmongers” and said Cyprus was paying the price.

“Everything would be better with peace,” said Sachs. “Your island remains divided, a beautiful island, there is still no political solution, and this has a very significant economic cost.”

He also referred to how Cyprus’ relations with Russia in terms of tourism, finance and business had been affected due to the war in Ukraine. The war in Israel and Gaza “is also a terrible blow to the region”, he said.

“These wars, whether it is the conflict with Turkey, or the war between Nato and Russia in Ukraine, or Israel’s war in Palestine, have significant costs, not only for Cyprus, but for Europe as a whole, which is in a very deep crisis, and a crisis that is unfortunately getting worse for Europe, not better,” he added.

Sachs said Europe’s “web of Russophobia” centred on Moscow attacking other EU countries “belonged in the realm of fantasy”.

“This is a war that was started by the United States, but now for some reason European leaders want to continue it,” he said.

“They want you to waste 5 per cent of GDP on war spending, which is crazy, when this war would end diplomatically if Ukraine were neutral and if Nato stopped its eastward expansion and if the warmongers stopped dreaming of an escalating war with Russia.”