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Historic decision: Cypriots vote NO to bank deposits tax

With 39 votes against and 19 abstentions from Anastasiades’ ruling party, Cypriots said a historic NO to Eurogroup decision to charge with a levy bank deposits. Upon announcement of the rejecting decision protesters who had gathered outside the Parliament broke in to loud applaud.

No one Cypriot MP voted in favor of the levy.

While the impact and consequences for Cyprus cannot be predicted at the moment, the European Commission reacted with a sound…silence! One hours after the voting result became known and no comments has been spoken from Brussels.

European partners has warned Cypriots of “fatal consequences” should they reject the levy.

Short before the outcome of the voting, the European Central Bank told Dow Jones, that it would continue to supply Cypriot banks with liquidity “according to existing rules”.

Everything is still open, as no comment was issued from Berlin as well.

It looks as if Cypriot banks would open on Thursday. The big question is whether money will flee the country.

Cypriot finance ministry Michalis Sarris dismissed earlier reports, he had submitted his resignation to President Anastasiades before taking off to Moscow.

Greece zzz…

The Cypriots’ NO to Troika seems to have shaken also the Greek a little bit. Leader of Democratic Left and junior coalition government partner, Fotis Kouvelis, told media that  he disagrees with the emergency property tax to be imposed for a third year – one of the Troika’s preconditions for the disbursement of the 2.8 billion euro Greek bailout tranche.

DemLeft leader spoke to the media after the meeting of the three coalition party leaders Samaras, Venizelos and Kouvelis. The meeting took place at the same time the voting was taking place in Cyprus.

The three leaders met to discuss the Troika’s commandments like additional taxes and lay-offs in the public sector.

Finance Minister Yiannis Stournaras assured the press that “Cyprus will not default. Who claims this?” Stournaras asked journalists asking him to comment on the levy rejection.

Yes, exactly this Stournaras who convinced the Cypriot delegation not to abandon the Eurogroup meeting on Saturday and who said Yes to deposits levy.

PS as we say in Eurovision “Cyprus 12 points!” 🙂

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