REPORT ECONOMY AND FINANCE SOCIO-ECONOMIC AND POLITICAL IMPACT OF AUSTERITY POLICIES IN NORTH CYPRUS A Brief Assessment Sertac Sonan and Omer Gokcekus 2020 This report evaluates the impact of austerity policies on Turkish Cypriot economy, society and politics by using official statistics and interviews with experts. The results of the austerity measures have been mixed. The budget deficit has been reduced but public debt stock is still high; moreover, household debt has considerably increased. Falling living standards and external meddling created a backlash on the political parties across the political spectrum and made governing more difficult.