Cyprus is to freeze all accounts over 100K Euros in their second-largest bank and take money to pay off the country's debts - potentially 100% of customers' money. Cypriot banks have many rich Russian customers - but many ordinary Cypriots, plus Brits who have retired there, could lose every penny of their hard-earned savings. Cyprus was forced to agree to raid bank accounts to get a bail-out from the Eurozone. Was Germany right to insist on it? (Image by gabreleiros under Creative Commons 3.0 License)
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The irony is that Cyprus turned down the initial proposal to take 9.9% of all accounts over 100K Euros, and instead is taking potentially 100% from Laiki customers and 30% from Bank of Cyprus. Not exactly a fairer option!
A wise answer, kallini2010. "Those who let it happen" is an important phrase. The rest of the EU and the world are letting it happen, and it will not end here.
You're right. Why should people work and save all their lives if the bank can just grab every penny? If the politicians targeted Russian gangsters, fair enough, but they are not doing that. It's like monopoly money to them.
The EU has bailed out Greece twice, to the tune of hundreds of billions of Euros, without taking a penny from depositors, and most of the "toxic debt" of Cyprus is Greek debt written down by the EU! People did not expect this.
I agree. Tax evasion and money laundering should be stopped - but stealing honest people's life savings can't be justified on the grounds that some accounts are suspect. It's a poor excuse. Germany is wielding a big stick and will wield it more.