Merkel Warns Cypriots To Give In

Merkel Warns Cypriots To Give In

German Chancellor Angela Merkel is playing hard ball with Cyprus
German Chancellor Angela Merkel is playing hard ball with Cyprus

German Chancellor Angela Merkel, whose country is insisting that Cypriot bank depositors help pay the cost of a crisis they didn’t create, said that the Eurozone will not relent on that demand and warned Cypriots: “Don’t try our patience.” The hard stance came as she was talking to members of her Parliamentary party group while the Cypriot government was trying to find an alternate way to put up enough collateral to get 5.8 billion euros ($7.5 billion) from potential investors or another scheme to produce the equivalent.

International lenders have offered to provide a 10 billion euros ($13 billion) loan to keep the island country’s banks and economy from collapsing, but only if Cyprus comes up with the difference needed and reach a total of 17 billion euros ($21.9 billion) so that the government won’t have to default, a prospect that could rattle the Eurozone.

Germany is the largest contributor in the Troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB) to bailout loans for Greece and would be for Cyprus as well, but Merkel has insisted on harsh austerity measures for both countries, making her an enemy to many but supported by others, particularly politicians who like her hard line.

She said she opposes one of the ideas being bandied about, to nationalize pension funds, suggesting that Cyprus will have no choice but to go back to the Parliament that rejected the confiscation tax 36-0 and try again, or find another method if it wants to keep getting liquidity from the European Central Bank (ECB) which has threatened to turn off the money tap as of March 25. Cypriot banks remain closed until then.

“I want Cyprus in the Eurozone but they have to understand that the existing business model has died,” she said, adding that Cypriots can not expect to keep a status quo with their country in crisis. The lenders want the government to seize up to 9.9 percent of bank account deposits, a plan that would break government guarantees to protect deposits under 100,000 euros ($130,000) from loss. The European Union said that guarantee does not prevent governments from seizing bank depositors money for its own use.

  • Savva Joan

    Heil Merkel..she manage what Hitler didn’t..taking over Europe! Shame on you Merkel and down with Germany!! Nothing will change the fact that you are nazi pigs!!

  • worldarts

    Merkel is another good example of the new Nazi mentality in Germany and should be voted out of office immediately for international theft and committed fraud with the blessings of the EU Commission. They ar all CRIMNALS raping Europe!

  • Alex

    Commies (or Skopians) like you analogizing Merkel as a “nazi” is absurd. You are the Nazi. All you do is endorse violence against our democratically elected government.

  • Alex

    It would be understandable if the EU had equally gone after much bigger, European tax havens like the Switzerland, Luxembourg, and others….but going after only… only… an already weak Cypriot banks at a sensitive time like this comes off as plain prejudice.

    Triggering a bank run and putting Cypriots in the middle of a manipulative attack against Russian money shows a lack of goodwill towards Greeks. Now that the card has been dealt even if Cyprus ends up with liquidity from the ECB it will only be a temporary band aid. Who now other than Greeks would ever want to put money in a Cypriot bank, or want to keep it there, if they know it can be confiscated on a whim? One way or another most of the money in Cypriot banks is going to leave. The troika just destroyed the Cypriot financial industry.

    Seeing as some in the EU now seem more interested in punishing Greeks than helping us recover, and seeing as they *all* pretend not to notice the Skopians attempts to usurp our identity, Cypriots should be considering facing the pain of bankruptcy rather than bailout. While our leftists fantasize they can avoid austerity by doing that, the reality is it will be much more severe but at least it would be on our terms. Neither the EU or Russia care about the Greek people. We obviously are just pawns not human beings to them.

  • Cypriot

    And to help Luxembourg’s case that it isn’t just a tax haven, we have Greek companies, such as FAGE, moving over there.

  • gllev

    Wrong, Luxemborg was chosen as it would be easier for Fage and other Greek companies to fund expansion in the form of loans, not because it is a tax haven. Fage would suffer in Greece right now, it would be impossible for Fage to take out business loans in Greece and at competitive rates in the current environment, that is why Luxemborg was chosen.

    Luxembourg companies are subject to a corporate income tax rate of 29,22%, plus a surcharge of 7% of the tax, as well as a municipal business tax.

    Reference

    http://www.luxembourgforbusiness.lu/business-taxation

  • Cypriot

    Why not just get an EU grant?

  • Q

    Hitler was democratically elected.