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"They cannot leave EU so they must do anything else asked." Good lord, do you ever read the news? In case you missed it, the last 2 weeks have involved non-sto

"They cannot leave EU so they must do anything else asked." Good lord, do you ever read the news? In case you missed it, the last 2 weeks have involved non-stop negotiations with various parties as the people Cyprus pressured the Parliament of Cyprus into rejecting the original deal, with had largely been designed by the Germans. And the deal now being considered does not resemble any deal that was suggested by the Germans or the Russians, so clearly Cyprus can say "No", at least enough to gain some flexibility. And Cyprus can certainly leave the euro, thus endangering the long run health of the European project -- and considering how much Germany has benefited by having no restrictions on its exports to the rest of Europe, this would be bad news for Germany. But even more crucially, there is the question, has Cyprus already, de-facto, left the euro? http://economistsview.typepad.com/economistsview/2013/03/fed-watch-do-capital-controls-mean-cyprus-has-already-left-the-eurozone.html http://economistsview.typepad.com/economistsview/2013/03/fed...

OGinparadise 14y ago
They said no and ran to Russia to try to pressure the Northern Europeans. And they came back crying... The new deal, AFAIK, confiscates all money over 100K euros in the second largest bank, the other one was a 10% tax on all. Either way, Greece had some leverage and used it to its advantage. Despite the huge cuts they were forced to make, they never met the goals set and they were lowered or extended. Cyprus it seems, has very little to no leverage. They can surely leave the Euro, like I can leave my wife, drop the lease and quit the job at the same time with nothing else waiting.
- masklinn 14y ago
  > The new deal, AFAIK, confiscates all money over 100K euros in the second largest bank, the other one was a 10% tax on all. It's not a confiscation of all the money. Accounts are frozen, but the final levy (solely on accounts >€100k rather than across the board) are expected to be around 30%: > Asked about the level of losses on uninsured depositors in Bank of Cyprus, he told state radio: "The assessment is that it will be under or around 30 percent."
  - OGinparadise 14y ago
    The way I read it, all their money in the second largest bank (above EUR 100K) is on hold, until all the loans, and investments are unwounded. http://www.reuters.com/article/2013/03/25/cyprus-resolution-idUSB5E8KL01220130325 http://www.reuters.com/article/2013/03/25/cyprus-resolution-... No one really knows how much they'll get back. That's a lot of uncertainty, they essentially screwed one bank's customers over and sent the insured accounts to another.
DangerousPie 14y ago
The BBC wrote [1] on the 18th: > "Reports have suggested that eurozone leaders, particularly in Germany, insisted on the levy because of the large amount of Russian capital kept in Cypriot banks, amid fears of money-laundering. However, German Finance Minister Wolfgang Schaeuble said he and the International Monetary Fund had been in favour of "respecting the deposit guarantee for accounts up to 100,000" euros." So to me it sounds more like the Cypriot government initially tried to put more of a burden on small deposits but now agreed to do it the way the EU always wanted. [1] http://www.bbc.co.uk/news/world-europe-21825981 http://www.bbc.co.uk/news/world-europe-21825981

OGinparadise 14y ago

They said no and ran to Russia to try to pressure the Northern Europeans. And they came back crying... The new deal, AFAIK, confiscates all money over 100K euros in the second largest bank, the other one was a 10% tax on all. Either way, Greece had some leverage and used it to its advantage. Despite the huge cuts they were forced to make, they never met the goals set and they were lowered or extended. Cyprus it seems, has very little to no leverage. They can surely leave the Euro, like I can leave my wife, drop the lease and quit the job at the same time with nothing else waiting.

masklinn 14y ago
> The new deal, AFAIK, confiscates all money over 100K euros in the second largest bank, the other one was a 10% tax on all. It's not a confiscation of all the money. Accounts are frozen, but the final levy (solely on accounts >€100k rather than across the board) are expected to be around 30%: > Asked about the level of losses on uninsured depositors in Bank of Cyprus, he told state radio: "The assessment is that it will be under or around 30 percent."
- OGinparadise 14y ago
  The way I read it, all their money in the second largest bank (above EUR 100K) is on hold, until all the loans, and investments are unwounded. http://www.reuters.com/article/2013/03/25/cyprus-resolution-idUSB5E8KL01220130325 http://www.reuters.com/article/2013/03/25/cyprus-resolution-... No one really knows how much they'll get back. That's a lot of uncertainty, they essentially screwed one bank's customers over and sent the insured accounts to another.

DangerousPie 14y ago

The BBC wrote [1] on the 18th: > "Reports have suggested that eurozone leaders, particularly in Germany, insisted on the levy because of the large amount of Russian capital kept in Cypriot banks, amid fears of money-laundering. However, German Finance Minister Wolfgang Schaeuble said he and the International Monetary Fund had been in favour of "respecting the deposit guarantee for accounts up to 100,000" euros." So to me it sounds more like the Cypriot government initially tried to put more of a burden on small deposits but now agreed to do it the way the EU always wanted. [1] http://www.bbc.co.uk/news/world-europe-21825981 http://www.bbc.co.uk/news/world-europe-21825981