STUDY Social Cohesion and the State in times of Austerity Cyprus ODYSSEAS CHRISTOU, CHRISTINA IOANNOU, ANTHOS I. SHEKERIS September 2013  On 2 April 2013 Cyprus reached an agreement with the Troika on an Economic Adjustment Program aimed at addressing the country’s financial, fiscal and structural imbalances. A general assessment of the overall impact of the austerity program illustrates that the specified targets have been met both in terms of objective and the scheduled timeframe of implementation thus far.  An analysis of different sectors of the economy illustrates that the»bubble« sectors of construction and financial services largely account for the economic contraction. Conversely, tourism and company registration services have remained resilient with little downward change.The extent of the impact of the banking crisis remains undetermined and could pose further future risks, while unanticipated problems in the banking sector may resurface.  The recession continues unabated, confirming predictions that the trend is not expected to reverse prior to 2015.