Cyprus going down the drain

[ApfelGanja]

As some of you may have heard, Cyprus banks have closed (and all assets frozen) and our government has brought forth a proposal from Germany and France for a haircut (bank account cut) of 10% which means that all bank accounts which hold above a certain amount of money will have 10% taken by the government to fix our debts. Cyprus helped bail out Greece with a significant sum some time ago and now need 57% of our GDP to bail ourselves out, as Greece is in no state to pay us back. Our newly elected president Nikos Anastasiades has no foreign experience whatsoever and simply buckled under the pressure of Germany and France, who decided they would pay 10bn of our 15bn EUR bail-out IF the government of Cyprus initiates a haircut for the remaining 5bn EUR.

On Tuesday 19th of March, the parliament voted against the motion with 36 against and 19 abstaining.

Now Cyprus's reputation is ruined, and many foreign businesses are trying to leave the island to save themselves. Russia is quite visibly pissed off, as Cyprus is filled with Russian influence (10-15% of Cyprus's population are Russian speakers AND many Russian oligarchs are holding their money right here). Russia isn't going to save Cyprus this time after all.

Many jobs have been lost, many strikes and riots have been held, and many people aren't in the best of moods.

 

This is only a very broad overview of the situation, there is much more to say, but I suppose all of you who are interested may research it if you so desire.

 

[DFighter]

imo those south europe country's never should have been allowed to join the euro

milliards of euro's wasted only cause "the o so smart leaders can't manage the simple thing: don't spend more money then you recieve.

[ApfelGanja]

imo those south europe country's never should have been allowed to join the euro

milliards of euro's wasted only cause "the o so smart leaders can't manage the simple thing: don't spend more money then you recieve.

Although the Greeks haven't been very clever in the last few years, Goldman Sachs did contribute quite a bit to their downfall.

As for us, Anastasiades, who has no foreign experience whatsoever, buckled under Merkel and Hollande. + we gave Greece more money than our entire GDP I think. And now our debt is 57% of our GDp (about 15bn EUR)

[pyrka]

and we have another place where there are financial problems ... I wonder how will it all end and who will be the next ...

[Helmut the soldier]

Srsly what positive changes did the euro make after all these years?

[Drizzt DoUrden]

no custom duties, you dont have to change money..... it is not the euro. the euro is a nice thing.

 

every country (except finland) which has the euro is in breach with the contract of maastricht, so not only the south. a country is allowed to have a debt in the amount of 60% (or sth like this) of their gdp. btw, i doubt that the debt is only 57% because in the end of 2011 the debt was over 70% of their gdp.