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Cyprus banking sector ‘deeply concerns’ EU political leaders
Majority of political leaders in the European Parliament warn that ‘lack of transparency and democratic accountability’ in the original solution proposed by the European Commission, the IMF and the ECB ‘only serves to undermine confidence in the EU’.
21 March 2013, 12:00am
Staff Reporter
Staff Reporter
2 min read
European Parliament President Martin Schulz has warned that the original solution proposed by the European Commission, the International Monetary Fund and the European Central Bank for Cyprus will "only serve to undermine confidence in the European Union".
Speaking on behalf of the majority of political group leaders in the European Parliament Conference of Presidents, Schulz said they "regretted the lack of transparency and democratic accountability in the original solution."
Schulz also added that eurozone finance ministers must take responsibility for the original solution for the Cyprus banking sector.
"The proposed solution was taken behind closed doors in the early hours of the morning without proper reflection on the consequences for ordinary people. Yet the 'blame-game' on whose proposal this was only serves to undermine confidence in the EU," Schulz said.
Speaking on the stalemate of Cyprus's banking issue, Schulz said the group was of the opinion that that deposits of less than €100 000 should be exempted from any levy.
"A fairer and sustainable solution for the Cypriot people must be found. We need a European solution to the Cyprus problem, not an external one. Ordinary people's savings should not be used to bail out the banking sector," he said.
Cypriot ministers voted down the proposed levy on the island's bank deposits on Tuesday, thrusting the eurozone into further difficulties. Under the €10 million bailout's terms, people in Cyprus with less than €100,000 in their accounts would have to pay a one-time tax of 6.75%. Those with sums over that threshold would pay 9.9% in tax.
The EP's conference of presidents insisted that the eurozone banking system was undergoing a radical overhaul with the establishment of a banking union and a single supervisory mechanism.
"The situation in Cyprus underlines the need for these to be put in place as soon as possible. Direct EU supervision over eurozone banks will be key in ensuring that similar crises as the one in Cyprus would be avoided," the group said.
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How can the people of Europe expect the politicians to solve their problem,when the politicians are the problem.
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Surely it was not the people who deposited their money in the bank that created this problem so why should they be the ones who pay?
Joseph MELI •
Anyone would think that this situation with the banking sector in Cyprus was a fresh or recent one and that it is a bit rich of the EU leaders to state that there was "a lack of transparency and democractic accountability" in the original proposed "solution " to this crisis -as virtually all decisions taken by the meglomaniacs running the asylum .aka EU,clearly demonstrate evey single day such "lacks".Moreover,that the EU hierarchy will have their way eventually -as they dont do rejection nor accept their wishes or will not being applied-and a tax (in one form or another )or levy on depositors in Cyprus banks WILL be applied-as their WILL be done!
