Cypriot vote hangs in the balance as government scrambles to amend deposit levy; Eurogroup reaffirms the importance of guaranteeing deposits below 100,000 Cyprus announced yesterday that its banks will stay closed until at least Thursday, while the parliamentary vote on the deposit tax was pushed back by 24 hours to 4pm GMT today. However, there are conflicting reports this morning on whether the vote will go ahead. Reuters reports that Cypriot government spokesman Christos Stylianides told state radio that the vote is unlikely to pass.
In an attempt to ensure the vote does pass, the Cypriot government is scrambling to amend the proposal so that the burden on small depositors is reduced or removed completely. The Cypriot press is reporting this morning that an amended draft of the levy sees: deposits below 20,000 exempt, deposits between 20,000 and 100,000 taxed at 6.75% and deposits over 100,000 taxed at 9.9%. However, there are questions whether this will raise the required 5.8bn. Following a teleconference yesterday, the Eurogroup said in a statement that it reaffirms the importance of fully guaranteeing deposits below 100,000, adding that it does not mind how the levy is structured as long as it raises the target amount.
The Moscow Times quotes Russian Finance Minister Anton Siluanov as saying, We wanted the decision to be made jointly , and now we'll be closely following the situation and also consider the issue of our participation, suggesting Russia may not extend its 2.5bn loan to the country as had been assumed. The Cypriot Finance Minister will meet his Russian counterpart tomorrow to discuss the issue.
Meanwhile, several thousand expat Britons with Cypriot bank accounts will have their pension payments frozen until at least today to ensure they receive them after any bank deposit tax is enacted, Treasury Minister Greg Clark has said.
Open Europe Blog Open Europe Blog 2 Independent Independent 2 Alithia Guardian Guardian 2 Times Times 2 IHT IHT 2 IHT 3 Bild Welt Welt 2 WSJ FT Il Sole 24 Ore Repubblica El País EUobserver FAZ FAZ 2 FAZ 3 FAZ 4 Les Echos 2 Süddeutsche Süddeutsche 2 Süddeutsche: Hulverscheidt DWN DWN 2 DWN 3 DWN 4 Irish Independent Telegraph Telegraph Telegraph: Warner Irish Times Irish Times Irish Times European Voice European Voice Euractiv Euractiv BBC BBC: Hewitt Moscow Times Moscow Times 2 Cyprus Mail Les Echos Kathimerini Kathimerini 2 Famagusta Gazette Famagusta Gazette 2 Famagusta Gazette 3 Cyprus Mail Handelsblatt Daily Express Daily Mail Rzeczpospolita Euractiv Elsevier: Dijkstra Forsal.pl Eldiario.es Eurotopics.net
Ruparel: Worrying erosion of trust is biggest Cypriot euro risk;
Howarth: This is not legally fair or just but the eurozone will survive
Writing in City AM, Open Europes Raoul Ruparel argues that there is a risk of immediate contagion from Cyprus, although it can be contained, but the bigger risk is that a future bailout will be far more difficult to activate, as political trust between EU partners, as well as with populations, is eroded. Open Europes Christopher Howarth writes on Conservative Home that it is difficult to argue this is legally fair or just the euro will live to see another day. Open Europes blog and twitter coverage of the Cypriot crisis were cited by the FT, Telegraph, Skai, Sigma, and Guardian live blogs.
Bilds Chief Editor Nikolas Blome describes the deal as an own goal for the eurozone, arguing that while Cypriot banks should be made to contribute financially to the bailout, this should not include small depositors who did not contribute to the islands problems.
City AM: Ruparel Telegraph: Live blog Guardian: Live blog Conservative Home: Howarth Bild: Blome WSJ: Nixon Guardian: Elliott Independent: McRae FT: Rachman El País: Editorial Times: Posener Skai Sigma
Italy has been given the green light by the European Commission to pay back tens of billions owed by the public administration to private suppliers without these payments being counted as new debt under EU budget rules, reports La Stampa.
Repubblica La Stampa Corriere della Sera FT
New figures published by the Bank of Spain show that the number of bad loans held by Spanish banks has started increasing again this year. They stood at 10.78% of the total at the end of January, reports Cinco Días.
Expansión Cinco Días
According to new Eurostat figures released yesterday, the eurozones trade deficit in goods with the rest of the world in January 2013 stood at -3.9bn compared with -9.1bn in January 2012.
Eurostat Le Figaro
Belgian Economy Minister Johan Vande Lanotte and Labour Minister Monica De Coninck have filed a complaint with the European Commission against Germany, claiming that the lack of a German minimum wage causes unfair competition for Belgian companies and that "Eastern European workers are being heavily exploited" in Germany.
De Morgen Le Soir
Bernd Lucke, one of the leaders of Germany's new anti-euro party Alternative for Germany has specified that The return to national currencies is our aim, but we do not want to pull out of the euro overnight and go back to the Deutschmark in contravention of treaties.
Reuters
An FT leader argues it is questionable whether MEPs have the right to regulate pay across the financial sector before concluding that due to the Lisbon treaty ministers would be wise to take the European parliament more seriously than they have done in the past.
FT: Leader
In an interview with Die Welt, Reiner Haseloff, the President of the state of Sachsen-Anhalt, said that his CDU party ought to remain open to the possibility of forming a grand coalition with the SPD after this years federal elections.
Welt
Former Polish President Aleksander Kwasniewski has launched a new initiative called Europa Plus for greater collaboration on the Polish centre-left between the social democratic SLD, liberal-populist Ruch Palikota and independent politicians, which could result in a joint list for next years European Parliament elections.
Rzeczpospolita Gazeta Wyborcza
Bron: politics.be
In an attempt to ensure the vote does pass, the Cypriot government is scrambling to amend the proposal so that the burden on small depositors is reduced or removed completely. The Cypriot press is reporting this morning that an amended draft of the levy sees: deposits below 20,000 exempt, deposits between 20,000 and 100,000 taxed at 6.75% and deposits over 100,000 taxed at 9.9%. However, there are questions whether this will raise the required 5.8bn. Following a teleconference yesterday, the Eurogroup said in a statement that it reaffirms the importance of fully guaranteeing deposits below 100,000, adding that it does not mind how the levy is structured as long as it raises the target amount.
The Moscow Times quotes Russian Finance Minister Anton Siluanov as saying, We wanted the decision to be made jointly , and now we'll be closely following the situation and also consider the issue of our participation, suggesting Russia may not extend its 2.5bn loan to the country as had been assumed. The Cypriot Finance Minister will meet his Russian counterpart tomorrow to discuss the issue.
Meanwhile, several thousand expat Britons with Cypriot bank accounts will have their pension payments frozen until at least today to ensure they receive them after any bank deposit tax is enacted, Treasury Minister Greg Clark has said.
Open Europe Blog Open Europe Blog 2 Independent Independent 2 Alithia Guardian Guardian 2 Times Times 2 IHT IHT 2 IHT 3 Bild Welt Welt 2 WSJ FT Il Sole 24 Ore Repubblica El País EUobserver FAZ FAZ 2 FAZ 3 FAZ 4 Les Echos 2 Süddeutsche Süddeutsche 2 Süddeutsche: Hulverscheidt DWN DWN 2 DWN 3 DWN 4 Irish Independent Telegraph Telegraph Telegraph: Warner Irish Times Irish Times Irish Times European Voice European Voice Euractiv Euractiv BBC BBC: Hewitt Moscow Times Moscow Times 2 Cyprus Mail Les Echos Kathimerini Kathimerini 2 Famagusta Gazette Famagusta Gazette 2 Famagusta Gazette 3 Cyprus Mail Handelsblatt Daily Express Daily Mail Rzeczpospolita Euractiv Elsevier: Dijkstra Forsal.pl Eldiario.es Eurotopics.net
Ruparel: Worrying erosion of trust is biggest Cypriot euro risk;
Howarth: This is not legally fair or just but the eurozone will survive
Writing in City AM, Open Europes Raoul Ruparel argues that there is a risk of immediate contagion from Cyprus, although it can be contained, but the bigger risk is that a future bailout will be far more difficult to activate, as political trust between EU partners, as well as with populations, is eroded. Open Europes Christopher Howarth writes on Conservative Home that it is difficult to argue this is legally fair or just the euro will live to see another day. Open Europes blog and twitter coverage of the Cypriot crisis were cited by the FT, Telegraph, Skai, Sigma, and Guardian live blogs.
Bilds Chief Editor Nikolas Blome describes the deal as an own goal for the eurozone, arguing that while Cypriot banks should be made to contribute financially to the bailout, this should not include small depositors who did not contribute to the islands problems.
City AM: Ruparel Telegraph: Live blog Guardian: Live blog Conservative Home: Howarth Bild: Blome WSJ: Nixon Guardian: Elliott Independent: McRae FT: Rachman El País: Editorial Times: Posener Skai Sigma
Italy has been given the green light by the European Commission to pay back tens of billions owed by the public administration to private suppliers without these payments being counted as new debt under EU budget rules, reports La Stampa.
Repubblica La Stampa Corriere della Sera FT
New figures published by the Bank of Spain show that the number of bad loans held by Spanish banks has started increasing again this year. They stood at 10.78% of the total at the end of January, reports Cinco Días.
Expansión Cinco Días
According to new Eurostat figures released yesterday, the eurozones trade deficit in goods with the rest of the world in January 2013 stood at -3.9bn compared with -9.1bn in January 2012.
Eurostat Le Figaro
Belgian Economy Minister Johan Vande Lanotte and Labour Minister Monica De Coninck have filed a complaint with the European Commission against Germany, claiming that the lack of a German minimum wage causes unfair competition for Belgian companies and that "Eastern European workers are being heavily exploited" in Germany.
De Morgen Le Soir
Bernd Lucke, one of the leaders of Germany's new anti-euro party Alternative for Germany has specified that The return to national currencies is our aim, but we do not want to pull out of the euro overnight and go back to the Deutschmark in contravention of treaties.
Reuters
An FT leader argues it is questionable whether MEPs have the right to regulate pay across the financial sector before concluding that due to the Lisbon treaty ministers would be wise to take the European parliament more seriously than they have done in the past.
FT: Leader
In an interview with Die Welt, Reiner Haseloff, the President of the state of Sachsen-Anhalt, said that his CDU party ought to remain open to the possibility of forming a grand coalition with the SPD after this years federal elections.
Welt
Former Polish President Aleksander Kwasniewski has launched a new initiative called Europa Plus for greater collaboration on the Polish centre-left between the social democratic SLD, liberal-populist Ruch Palikota and independent politicians, which could result in a joint list for next years European Parliament elections.
Rzeczpospolita Gazeta Wyborcza
Bron: politics.be