Cyprus said no: tonight Parliament rejected the rescue plan agreed with the Eurogroup, which also provides for a forced levy on bank deposits as a guarantee.
“It is the reform package of Cyprus, it is up to Cyprus to decide the structure of the contribution of the banks. The important thing is that in the end the bill is 5,8 billion” sums up ECB member Joerg Asmussen. In short, the money will have to come out in another way. Europe, in fact, has granted a way out and will also allow a change to the tax on bank deposits desired by Brussels (6,75% for those below 100 thousand euros and 9,9% for those above), provided that Nicosia manages to raise 5,8 billion euros. Otherwise the 10 billion loan will not be released. After all, the same finance ministers of the Eurozone had already explained that "the Eurogroup is of the opinion that small deposits should be treated differently from the others" exempting those under 100 thousand euros.
36 deputies voted against the plan, while 19 abstained. The abstainers were representatives of the Disy party of President Nicos Anastasiades, although in favor of the plan. All the others are against it (including the eight from the Diko party, an ally of the government). The moves of Great Britain also contributed to increasing tensions, which first froze the payments of British pensioners living in Cyprus in order to avoid forced withdrawals, then decided to send a military plane carrying one million euros in cash for British soldiers and their families on the island.
A move that adds pressure to Nicosia: to obtain the exemption of deposits of less than 100 thousand euros, the levy on all the others would have to be increased. A move that may not be enough to reach 5,8 billion, but which would meet resistance from the Russians with the oligarchs who have elected the island as their tax haven with deposits calculated at 25 billion. The indirect reply to Vladimir Putin by German Finance Minister Wolfgang Schaeuble is harsh: “Anyone who invests his money in a country where less taxes are paid assumes the risk. It is irresponsible to think that only European taxpayers should finance foreign investment in Cyprus”.
Meanwhile, the anger of the population continues, which until 21 March will find the shutters lowered on bank branches at the behest of the Central Bank, which has frozen deposits to avoid capital flight (even the Cyprus Stock Exchange will remain closed until Wednesday).
