Cyprus votes against bank tax bailout
- 11 years ago
Anger in Cyprus and now uncertainty across the euro zone.
MPs have firmly rejected a proposed EU bailout plan.
Politicians had warned they might ahead of a vote in parliament
MP Dimitris Silouris summed up the mood.
SOUNDBITE: European Party President, Dimitris Silouris, saying (English):
"We cannot easily accept this vicious attack from troika and especially from the Germans."
The EU had offered Cyprus 10 billion euros, but only on condition Cyprus raised another 6bln itself.
They controversially suggested Cypriot bank depositors should be taxed to raise the extra funds.
Banks were forced to close to prevent a bank run.
But the country is now facing the prospect of default and a collapsing banking industry.
CMC's Michael Hewson says Germany must now decided whether to find the extra cash or face the consequences.
SOUNDBITE: CMC Markets, Michael Hewson, saying (English):
"We're talking essentially about 5 billion e
MPs have firmly rejected a proposed EU bailout plan.
Politicians had warned they might ahead of a vote in parliament
MP Dimitris Silouris summed up the mood.
SOUNDBITE: European Party President, Dimitris Silouris, saying (English):
"We cannot easily accept this vicious attack from troika and especially from the Germans."
The EU had offered Cyprus 10 billion euros, but only on condition Cyprus raised another 6bln itself.
They controversially suggested Cypriot bank depositors should be taxed to raise the extra funds.
Banks were forced to close to prevent a bank run.
But the country is now facing the prospect of default and a collapsing banking industry.
CMC's Michael Hewson says Germany must now decided whether to find the extra cash or face the consequences.
SOUNDBITE: CMC Markets, Michael Hewson, saying (English):
"We're talking essentially about 5 billion e