People who rob old ladies in the street, or hold up security vans, are branded as thieves. Yet when Germany presides over a heist of billions of pounds from private savers’ Cyprus bank accounts, to ‘save the euro’ for the hundredth time, this is claimed as high statesmanship.
It is nothing of the sort. The deal to secure a €10 billion German bailout of the bankrupt Mediterranean island is one of the nastiest and most immoral political acts of modern times.
It has struck fear into the hearts of hundreds of millions of European citizens, because it establishes a dire precedent.
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Hands off! Banking sector workers have been protesting outside of Cyprus's parliament in Nicosia A Europe-wide precedent? The deal to secure a German bailout of the bankrupt Mediterranean island has struck fear into the hearts of hundreds of millions of European citizensIf democratically elected governments are willing to impose outright confiscation of up to 40 per cent of balances over €100,000 upon depositors in Cyprus, then why not another such hit tomorrow — in Spain, Italy or, most plausibly, Greece?
This is the most brutal display since 2008 of how far the euro-committed nations are willing to go to save the tottering single currency. It shows that the zone’s crisis will run and run, to the grievous disadvantage of almost everyone except the Germans.
Berlin insisted upon a harsh line towards the Cypriots because they inhabit a small island with no political clout. Cypriot bankers have behaved with fantastic irresponsibility. They lent huge sums to Greece, and offered high interest rates to dirty money, with no questions asked.
More... Now savings could be raided across Eurozone: Finance chief warns more EU taxpayers could be targeted as Cyprus rescue set to become first of manyMonths ago, the Germans made it clear that they baulked at providing a cash lifeline to the Russian gangsters who have tried to take over Cyprus with a nod from their friends in the Kremlin.
But hundreds of thousands of honest, decent citizens, including British residents, also had money in the island’s banks. They took it for granted that if Cyprus’s financial system was deemed worthy to be part of the eurozone, it must be as safe as the Bundesbank.
They were fully entitled to make that assumption, and to be outraged by the looting of their accounts today.
