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Originally Posted by Chris
My understanding is that the Cypriot parliament has also approved a 1% levy on everyone else, which as it is so much smaller than what was previously mooted, everyone seems to either be ignoring entirely, or else accepting with relief as it could have been far worse.
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I missed the 1% levy, although to be fair the news was just breaking. Reading news stories at the moment however suggest that this 1% has been talked about but no clear indication if that would be part of the policy. This would be a mistake as it breaks the idea of your savings being safe and could led to future bank runs.
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This is of course standard operating procedure for the EU. Its will is democratically refused, so it invites the voters to think again and produce the 'right' result second time out. In the background it makes cosmetic changes to its proposals designed to make it look as if they have backed off, when they haven't.
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Cyprus don't want them to back off because they want the bailout money. Cyprus did not tell the EU to back-off but that these terms were unacceptable and they're trying to find a new way to raise the money. The EU backing off would mean the collapse of their banks.
The 1% isn't in the current set of stories:
http://news.sky.com/story/1068912/cy...-bank-deposits
http://www.ft.com/cms/s/0/6910b762-9...#axzz2OOQ6hqTN
We'll have to wait and see what happens when the actual bill is produced.