In the face of a completely undemocratic raid on its peoples’ finances the no vote of the domestic politicians of Cyprus to the bail-out package is sending shockwaves around the world.
In a heartening show of true democracy the peoples’ representatives have sent the troika packing and forced its government to look at fresh, hitherto ‘unthinkable’, solutions such as selling off assets and future participation in the country’s off-shore interests.
But, before going any further I would urge you to read this excellent piece by Robert Kyprianou in CityWire where he says that much of Cyprus’s current problems were externally generated. He also points out that, because the politicians were prepared to entertain a bank account levy in one country, it has the potential to put all banks into the same category whether they are good or bad as all accounts would now be at risk.
What we now have are politicians across the EU coming to the realisation that doing murky deals behind closed doors over bank holiday weekends no longer cuts the mustard. The ‘people’ do actually matter.
Despite all the fears that the EU, especially in the Eurozone, had so much power that a federal state of Europe was almost a fait accompli a small country’s population has pulled the rug out from under its feet. This should send a heartening message out to all Euro-sceptics.
On Friday evening the powers that be across Europe were quite content that holders of bank accounts in Cyprus would be forced, without them being asked, into a debt for equity swap to raise the â‚¬5.8 billion needed. By Tuesday morning they are casting around hoping for a Russian gas deal and even an offer of help from the Orthodox Church of Cyprus, which is a major shareholder in the Hellenic Bank.
In the meantime banks remain closed and many ordinary people will be running out of money. Not to mention the businesses that supply the day-to-day goods that people need. How about peoples’ salaries? The UK has already flown in â‚¬1 million to supply its troops and workers stationed on the island with ready cash during this crisis. Will we soon see food being flown in for them too?
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