Sunday, 17 March 2013

Cyprus: another victim of the EU folly

Cyprus: another victim of the EU folly

The sinking of Cyprus, Greece, Portugal, Ireland, Spain and Italy is the direct consequence of the European Union folly. Its economy couldn’t possibly run at the same speed of the German economy. The saying that ‘any train goes as fast as the slowest carriage’ proved to be the revealed truth once again.

In December 2012, Cyprus was the latest country of the Eurozone that applied for a rescue programme for 17.5 billion Euros but the money couldn’t be found and the situation kept deteriorating. Now, the so called Eurogroup finance ministers decided that Cypriot banks should pay directly to keep the country alive implementing the so called Solidarity Levy (a one-off tax raiding their customers’ accounts at the tune of 5.8 billion Euros), as a precondition to receive a 10 billion Euros bailout. Without bailout, Cyprus will default public bond debt repayments within weeks.

In desperation, bank customers tried to empty their bank accounts but were faced with closed banks, cash machines that had been turned off or destroyed and money transfers that were no longer available. Imagine having to buy the daily bred and finding that you don’t have a penny in your pocket. This is the kind of situation that you have to experience yourself to be able to understand what it feels like it. Those who did not have money under the mattress – so to speak – were forced to beg for money.

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