HANDS OFF OUR SAVINGS CYPRIOTS DEMAND GOVERNMENT – The plans by the Eurozone and the Cypriot Government to levy a 10% charge on all saving accounts to stave off a banking collapse was always going to be met with fierce opposition from the people.
As the world markets opened on Monday it was clear that this plan had the real potential of throwing the entire worlds financial systems into a downward spiral as people clamored to withdraw funds from their banks.
The consensus in the streets was a united voice ‘If they can do this in Cyprus, they can do it in any EU member state and what’s stopping them from doing it each time the banks or government is in trouble?’
Due to the Euro Finance Ministers and Cypriot Governments actions the Cypriot people hit the streets in a show of force for their opposing such a plan; many of whom feel this is nothing but direct theft and from those who are incompetent to run the banking system and the government.
In direct response to the public demonstrations the Cypriot Government voted to reject Eurozone plans to force savers to bail out the banking system by imposing a levy of up to 9.9%. The vote in the Cypriot Parliament was unanimous in rejecting such a plan in with wake of public protest; which the German Government had insisted on if it was to provide bailout funds for the failing Cyprus economy.
As the Cypriot Government made its announcement to reject the plans there was visible relief from the public including some 60,000 British expats who have poured their live savings into the country for their retirement.
With the chapter of attempting to steal funds from savers account now clearly rejected the underlining problem remains … how is Cyprus going to raise the €5.8billion to pay its debts if it is to win a new €10 billion bailout fund from the EU?
The stark truth remains that without external funding the country’s banks face the real threat collapse which in turn would most likely result in the bankruptcy of the country.
Without a Eurozone bailout what options does the Cypriot Government have? This too became apparent as the Cypriot Finance Minister, Michalis Sarris, visited Moscow last night to seek a bailout from the Russians.
This would leave Berlin, Brussels and the European Central bank out in the cold that would in effect have no say on how Cyprus runs its country. It could be that the Russian energy corporations could in fact bail them out in return for access to Cypriot gas reserved.
The ultimate step, if the Russian Government or Russian Businesses bailout Cyprus, could be an exist of the Eurozone
Many feel, both inside the Government and the people of Cyprus that the Eurozone was simply trying to blackmail Cyprus into an untenable position and that this behaviour is becoming more and more evident as Brussels gains more powers to control EU member states.
One thing is for sure at this stage and that is Cyprus desperately needs to find cash to prevent a complete collapse of its banking system and a meltdown of its already deeply troubled economy.