EU Stiff-Arms Cyprus After Country Says 'No' To Bank Bailout Deal
I take note of the decision of the Cypriot parliament on the government's proposal for a oneoff stability levy.
I confirm that the Eurogroup stands ready to assist Cyprus in its reform efforts and reiterate the position of the Eurogroup as I stated yesterday.
Wolfgang Schaeuble, the German finance minister, is of course a major power player in all of the EU bailout negotiations.
His statement on the Cypriot parliament's decision to vote no on the deal today was similarly unhelpful (via Reuters):
"We regret the decision," Schaeuble told ZDF television. "Cyprus requested an aid programme. For an aid programme we need a calculable way for Cyprus to be able to return to the financial markets. For that, Cyprus's debts are too high."
Schaeuble added that it was a "serious situation" now in Cyprus and said the country had no one to blame for its situation other than itself. He said he doesn't think its "business model" works anymore and warned Cyprus must act quickly.
Cyprus is clearly in a bind, and it doesn't look like the EU has much figured out on what to do next.