Merkel’s Cyprus Gamble Explained as German Vote Nears
Politicians making (enforcing) economical decisions ... pure pornography
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Germany’s role in imposing the euro bloc’s first levy on bank deposits, in Cyprus, shows Chancellor Angela Merkel’s dilemma in explaining to voters facing September elections why they should pick up the tab for another bailout.
“I have to go to my constituency and explain to my people in my constituency why we are willing to lend more than 3 billion euros ($3.9 billion) to Cyprus,” Michael Fuchs, deputy parliamentary leader of Merkel’s Christian Democratic Union party, said in an interview with BBC Radio 4 today. “Why should Germans bail out these people and they are not willing to accept at least a minor bailing out by themselves?”
Euro finance ministers agreed on March 16 to force Cypriot bank depositors to share the cost of rescuing the country, the fifth euro-region bailout. Cyprus is to raise 5.8 billion euros from bank deposits, cutting the international contribution to 10 billion euros. Cypriots responded by lining up and emptying cash machines as the specter of capital flight threatened to disrupt the relative market calm of the past six months.
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