Cyprus Bailout | South Takes Proposals to Brussels

Cyprus Bailout | South Takes Proposals to BrusselsCyprus Bailout | South Takes Proposals to Brussels

It appears that the south’s President is taking a set of proposals to Brussels which are far worse than those originally rejected in an attempt to appease the electorate and national pride. This earlier rejection led to unnecessary suffering and gave the new government an air of incompetence. Admittedly, if the rumours surrounding the new proposals turn out to be true, at least now those with under €100,000 in the bank get to keep all their money even if they may not have ready access to it all.

However, it is not clear why the south ever suggested taking 6.9% from people who only have modest savings when it is clear that all that Europe wanted was a tax on the wealthy taking advantage of irresponsibly high interests rates. The government’s original ‘No!’ response, like that to the Annan Plan, may have fed national pride and an expectation of a better deal but when reality hit and a tax of 20-30%, instead of 9.9% had to be proposed, the government were left looking ‘deluded and foolish’, according to the Cyprus Mail.

Even now, there is a chance that the south’s MPs could reject the proposals and refuse to allow them to become law. It would be interesting to know how the votes go on Monday, or will it be Tuesday in a bid to save face and show that the south still has the nerve to defy Europe and its deadline.

Whatever the result, and whatever the currency that the south dispenses when it opens its banks, there is no doubt that the south will no longer be living on OPM (Other People’s Money) in the future. The south will have to face a new dawn with a chance to build a country with rock foundations and not on quicksand.

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