On the surface of things, the evolving situation in Cyprus’ finances does not seem to make complete sense. There was originally a strange sort stoical solidarity as the idea of levying a deposit tax as collateral against the Euro-Group’s line of credit from the island’s government but public outrage and fears of precipitating such seizures ultimately led to the collapse in negotiations. Presently, the Cypriots look poised to renege on the terms of this rescue package, and the EU looks willing to cut its losses, recognizing the grave realities of a marshal-economy. The transformation was quick, from darling of people seeking out a safe berth for the money to anathema, over-exposed—though fundamentally, the shenanigans were no different than what when on in other crisis lands, or for that matter, what is still tolerable, attractive about other safe harbours, like Luxembourg or the Channel Islands.
Friday 22 March 2013
brinksmanship or no quarter
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