The decision by Eurogroup is nothing short of economic plundering and destruction for Cyprus. It must be rejected!


The Eurogroup’s decision to confiscate 6.75% of deposits in accounts up to 100,000 euros and 9.99% for sums over 100,000 is a decision destructive to Cyprus’ future and manifests an attack on the current situation of thousands of Cypriots.

It is a decision which:

•    Is harmful to small depositors

•   Aims to wipe Cyprus off the global financial map, to the benefit of Germany and its satellite states (Luxembourg etc) which covet the foreign deposits in Cypriot banks

•    Benefits the banks, which instead of being punished are compensated for their bad investments

•    Violates the deposit guarantee scheme for sums up to 100,000 euros, creating a bad precedent which tomorrow may well be used across Europe (in Spain, Italy, Greece etc), and

•    Makes Cyprus’ public debt entirely non viable – From 89.7% of GDP in 2012 (three percentage points less than the Eurozone’s average) it enforces further indebtedness of 10 billion euros.

Up to a few weeks ago the Anastasiadis government promised adamantly that deposits would remain untouched.  This government has no legitimacy or mandate to sign this disgraceful agreement which paves the way for the dissolution of Cypriot democracy. Also without legitimacy yet telling of the opaque and arbitrary nature of the ECB’s operations were the blackmails from the ECB towards the Cypriot government about terminating liquidity provisions towards the banks, if the plan is not approved.

For all these reasons the Cypriot government must not validate the Eurogroup’s agreement. A loud ‘NO’ must be said towards the creditors, in order to safeguard social cohesion and national independence. In any case, the only ones mandated to decide are the Cypriots. The government should therefore, if it insists on this robbery in broad daylight of its citizen’s deposits, hold a referendum.

Furthermore, the Cypriot people should overturn the Memorandum and all the austerity measures which have already been implemented by the previous government, as they brutally target the living standards of Cypriot citizens. These measures render Cyprus a pariah nation of the EU, proving there is no such thing as a good and bad Memorandum, as either way, wages, pensions and unemployment benefits are lowered, redundancies are enforced, expenditures towards health are slashed, retirement age is increased by two years, benefits are removed, and indirect and direct taxation is increased (VAT, special consumption taxes on tobacco, alcohol and fuel).

Completing the Greek government bond exchange in March 2012 (the PSI) – enforced by the Eurozone itself, the poor supervision by the central banks, the incentives towards Cypriot banks to buy Greek government bonds from Deutche Bank and lastly, the funding of ambiguous loans approved by the banks’ own management, bear the full responsibility for the state in which the Cyprus now finds itself.

The only solution in favour of working people is the nationalization of the banks without any compensation and of course with full guarantee of people’s deposits. As the Greek Debt Audit Campaign, we stand in solidarity with the Cypriot people, and we condemn the decision by the Anastasiadis government and the Eurozone to save the banks by penalizing the people. Finally, we believe that the creation of a debt audit committee in Cyprus whose aim is to seek debt cancellation is a way towards finding a solution.

–    Troika – Keep out of Cyprus!

–    Cypriots should not pay for the losses of the banks!

–    Cancellation of Cypriot public debt!

Source:  Greek Debt Audit Campaign ELE