He emphasised the importance that had been attached to reaching a deal that was both fair and sustainable, while looking forward to the measures that still need to be taken to strengthen the fabric of monetary union.
The Eurogroup President said the deal was fair because it required investors that had benefited from the risk taking of the two Cypriot banks concerned to participate in the cost of their restructuring while "fully safeguarding all deposits below €100 000". Interest rates on deposits had clearly shown that there were risks inherent in the banking models concerned, and the solution chosen was therefore appropriate to the underlying problem. He considered the deal sustainable because the loans that will be provided to Cyprus as part of the programme are "set at a level which will enable Cyprus to repay them".
The Eurogroup President welcomed the solidarity shown towards Cyprus by all Eurogroup members, but said he believed that developments in Cyprus underscored the need to press ahead with a Banking Union that strengthens bank supervision and delivers genuinely integrated resolution mechanisms that will enable the EU to nip potential systemic risks in the bud better.
The Eurogroup President corrected mistaken impressions that the Eurogroup had waited too long with taking action on Cyprus. He reminded MEPs that for assistance to be granted to a Eurogroup member, assistance had first of all to be asked, and then a common understanding of the measures required had to be shared by all parties involved. As soon as this common understanding had been established following the Cypriot elections in February, a solution had been found to extremely complex issues within weeks. "Measures are now already underway" that give Cyprus "hope of a sustainable future".
Press release
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