‘Money won’t support people in Cyprus, it will support banks’ – German economist

38c9germany cyprus rescue deal3 ‘Money won’t support people in Cyprus, it will support banks’ – German economist

Germany has recently taken the toughest stance on the Cyprusrescue deal, slamming Nicosia’s decision to create a solidarityfund made up of pensions, property and future gas earnings.“Don’t forget that we’re heading for elections in Germany.Rescue packages that we’ve gone through in the past have beentotally unpopular with the German taxpayer. Going ahead now withsimilar solution to what we had in the past – you just cannot sellit to the German taxpayer,” Harry Bean told RT.On Sunday, Cypriot President Nicos Anastasiades traveled toBrussels hoping to reach consensus with eurozone finance ministerson the rescue plan aimed at preventing his country from goingbankrupt.“Those negotiations with Cyprus are very complicated. Everyparty has to keep up its bargaining power. It’s like game theory:you have to be on guard, you have to bluff… God knows what willhappen,” the German economist noted.Germans feel tired of paying multi-billion dollar bills forfailing European economies.“Ask Germans – we’re not saying we shouldn’t help Cyprus.Germans know that at the end of the day the money, the loans, theguarantees – whatever you want to call it – does not support thepeople in Cyprus. It’s supporting the banks, the banks’ owners,it’s supporting Wall Street, it’s supporting the equity bubble.That’s the whole issue here,” Bean added.Cyprus hoped to secure help from Russia. However, the two-daynegotiations between Cyprus’ finance minister and his Russiancounterpart failed to provide anything tangible. Michalis Sarrisleft Moscow empty-handed on Friday after Russia said it would nothelp out Cyprus before it agrees a bailout deal with the EU. It’sbeen reported Sarris was asking for a $5 billion loan, but had noluck.On Friday the discussion about the rescue plan for Cyprus’financial crisis was postponed. It’s supposed to stipulate limitson financial transactions, the division of the country’s secondbiggest bank and the creation of an ‘investment solidarityfund’.If the creditors do not approve the plan until Monday, theisland may go bankrupt and drop out of the euro currencyzone.


‘Money won’t support people in Cyprus, it will support banks’ – German economist

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