There has been a strong reaction in the European Parliament today to the details of the Cyprus bailout agreed over the weekend by European leaders.
The €10 billion deal agreed by the EU and IMF marks a radical departure from previous international aid packages. Under its terms, people in Cyprus with less than €100,000 in their accounts would have to pay a one-time tax of 6.75%. Those with sums over that threshold would pay 9.9% in tax.
Supporting calls in the European Parliament for the levy to be revised to protect small scale banking customers, Liam Aylward, MEP for Ireland East stated that the “mood of shock, anger and injustice in Cyprus is completely justified”.
“The savings levy on ordinary depositors’ money robs citizens of the protection they were guaranteed. The understanding given to date was that small savers in the EU are guaranteed that deposits up to €100,000 are safe regardless of the fate of the bank.
“At a time when we are trying to restore confidence in the Euro and in European leaders, this action flouts the rules of the Single Market and is toxic to the integrity of the Banking Union.”