22 March 2013

EP: Cyprus banks - Parliament calls for fairer and sustainable solution

As Cyprus is working to find agreement on an alternative plan, EP leaders hit out at the original Eurogroup proposal, which would have included a levy on all deposits. EP president Martin Schulz said: "The priority of the EP is that people who put money in their back accounts are sure they can get it back".

The leaders of EPP, S&D, ALDE, Greens/EFA and ECR said that deposits of less than €100,000 should be exempted from any levy. Mr Schulz said in a statement on their behalf: "The Conference of the Presidents is deeply concerned and takes a position that deposits of less than €100,000 should be exempted from any levy. A fairer and sustainable solution for the Cypriot people must be found. We need a European solution to the Cyprus problem, not an external one. Ordinary people's savings should not be used to bail out the banking sector."

Group leaders also criticised "the lack of transparency and democratic accountability" in the original solution proposed by eurozone ministers. Mr Schulz added: "The proposed solution was taken behind closed doors in the early hours of the morning without proper reflection on the consequences for ordinary people".

MEPs also confronted new Eurogroup president Jeroen Dijsselbloem over the controversial proposal when he addressed the EP's economic affairs committee Thursday. They criticised the plan to impose a levy on small depositors and questioned the way the situation was handled.

However, Dutch finance minister Dijsselbloem said: "Let me be clear that the Eurogroup was and is of the view that small depositors should be treated differently from large depositors". He added: "We have to simply stand for the integrity of the eurozone and therefore any debate on is it a systemic risk? Should we do anything? I think we should immediately step beyond that and say what we are going to do to deal with it."

Press release

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