Update: REJECTED!
Imagine a basketball being swatted back into Angela Merkel’s face…
A few updates on yesterday’s Cyprus bank deposit seizure story.
Supposedly the votes aren’t there to ratify the money grab. Which may mean that Angela Merkel and the EU will just keep twisting until the “proper” decision is arrived at.
“A one-time, ad hoc seizure of money isn’t a tax. It is confiscation. Or we can use a plainer word for it: theft.”
“The decision to expropriate Cypriot savers—even the poorest—was imposed by Germany, Holland, Finland, Austria, and Slovakia, whose only care at this stage is to assuage bail-out fatigue at home and avoid their own political crises.”
The Cyprus crisis as a pick-your-own-path adventure. That’s almost as retro as fiscal restraint and balanced budgets.
The New York Times says not to worry about Cyprus. OK, now I’m really worried.
The EU creditor states have at a single stroke violated the principle that insured EU bank deposits of up $100,000 will be guaranteed come what may, and in doing so they have more or less thrown Portugal under a bus.
They have demonstrated that the rhetoric of EMU solidarity is just hot air, that they will not force their own taxpayers to share a single cent of clean-up costs for the great joint venture of monetary union – in which northern banks, insurers, pension funds, and indeed governments, were complicit.
Their refusal to pay is entirely understandable in one sense – and if I were a German taxpayer, I would not care to swallow these losses either – but then the leaders of these creditor countries can hardly expect the world to believe that they will in fact do whatever it takes to hold EMU together. Quite obviously, they will not.
The sooner this is made clear, the better. The sooner they take the proper course of withdrawing from EMU and organise the break-up the euro in the least disruptive way, the sooner Europe can recover.
About Lawrence Person
Lawrence Person is a political commentator and science fiction writer living in Austin, Texas. His political work has appeared in National Review, Reason, The Freeman, Liberty and The World & I. His SF has appeared in Asimov's, Analog, F&SF, Postscripts, Jim Baen's Universe, Fear, and several anthologies. He owns such a large library (mostly science fiction first editions) he had to buy a two-story house to put it in, and then adopted a golden retriever to drag him out of his house on a regular basis.
