Title:Financial assistance to Cyprus
Content: - MEPs debate
Location:EP Committee on Economic and Monetary Affairs
EPRef93764 // European Parliament , Brussels,
Sent from:European Parliament , Brussels
Lieu: European Parliament, Brussels
End production: 07/05/2013 First transmission: 07/05/2013
Tuesday Eurogroup president Jeroen Dijsselbloem, European commissioner Olli Rehn and ECB board member Jörg Asmussen will explain to MEPs what happened exactly . Follow the debates live.
In return for a €10 billion loan package from the EU, Cyprus agreed to raise another €13 billion through a banking reform that included a haircut imposed on uninsured deposits over €100,000. Initially plans to raise a levy on deposits below €100,000 were also discussed, but these were later shelved.
Sharon Bowles, chair of the economic affairs committee, said during a chat with our Facebook fans, that the Cyprus case set a worrying precedent for other small countries, which is why better rules and better oversight are needed. The British member of the ALDE group also said there are valid concerns that the Cyprus situation could repeat itself in other countries.
EP president Martin Schulz also said that the negotiations on the bailout package lacked transparency, democratic accountability and were badly communicated and stressed the urgent need for a banking union.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Exterior view of the European Parliament, Brussels
||Cutaways in ECON Committee (3 shots)
||SOUNDBITE (French) Jean Paul GAUZES (EPP, FR), " I 'm wondering whether if you and your colleagues are aware of the fiasco and the way the problem (Cyprus) was dealt with ?."
||SOUNDBITE (English) Jeroen DIJSSELBLOEM, President of the Eurogroup, "We considered ,because some thought it preferable, to put the burden on all the deposits as you know , that was the first solution...
||SOUNDBITE (English) Jeroen DIJSSELBLOEM, President of the Eurogroup ,"Finally the burden was put on those investors and the uninsured deposits in the two banks where the main risks were concentrated. Is that a fair way to deal with this crisis in the banks of Cyprus, I think so."
||SOUNDBITE ( Italian) Leonardo DOMENICI (S&D, IT)," I believe that we need to put into place, common instruments for intervention ex-ante preventive and not after the bomb has exploded?."
||SOUNDBITE( Italian) Leonardo DOMENICI (S&D, IT),"The principle would be to promote different movements of capital there is speculative transfer on the one hand , there is transfer for investment of good and services on the other hand."
||SOUNDBITE (English) Jeroen DIJSSELBLOEM, President of the Eurogroup, "Capital restrictions are very unfortunate and they are a hindrance in free markets and free capital flows, yet i the case of Cyprus they were inevitable."
||SOUNDBITE (English) Jeroen DIJSSELBLOEM, President of the Eurogroup, "The way it 's been done now is a very harsh on the two banks, one being closed down and the other being fully restructured, but it is also allowing the Cypriot economy to then quickly restart and recover."
||SOUNDBITE (French) Sylvie GOULARD (ALDE, FR),"What are you doing, first of all to put up on the agenda not a "genuine banking Union", that is nothing compared to the seriousness of the problem, the question is not whether it is "genuine or not, the matter is to know if tomorrow we will have something different instead of a management by a nationalist cartel of people defending their own interests and refusing to respond to the European people and give account of the decisions that are taken?"
||SOUNDBITE (English) Jeroen DIJSSELBLOEM, President of the Eurogroup, "It is in the character of the Eurogroup; It is an intergovernmental group of ministers who as I do are very willing to come to European Parliament to give the information and answer all your questions but the decisions is finally made in our Parliaments.
||SOUNDBITE (English) Jeroen DIJSSELBLOEM, President of the Eurogroup, "one of the systemic problems that we have now is in our banking sector, so you ask me what I am doing , Iam giving top priority to deal with those problems. they are a threat to real economic development , they are a threat to jobs."
||SOUNDBITE (English) Jeroen DIJSSELBLOEM, President of the Eurogroup, " SOUNDBITE (English) Jeroen DIJSSELBLOEM, President of the Eurogroup, "You ask me what am I doing? I am putting top priority on those issues that will allow for new economic opportunities for the Eurozone, that will allow for new opportunities for the SMEs in the different countries. I'll stop as I see you are not happy with my answer."
||SOUNDBITE (French) Sylvie GOULARD (ALDE, FR)," I just wanted to make a comment, you are the most optimistic undertaker I have ever met."
||SOUNDBITE (English) Jeroen DIJSSELBLOEM, President of the Eurogroup, "Well I know one thing that all of us , that is a joint responsibility, we have to take along our citizens in all our countries and I know one thing , that if we start talking about undertaking , that we will not reach out people."
||SOUNDBITE (English) Sven GIEGOLD (GREENS /EFA, DE),"We as a Parliament have the right to know more from you , how it came to this wrong decision? And we asked this in writing and I would like to know whether you will respond in writing precisely why this process did not deliver? and we have the right to kow , the citizens of Europe have the right to know and it is too cheap simply to say, I will not answer, and I am the king of the Eurogroup and I take all the responsibility
||SOUNDBITE (English) Jeroen DIJSSELBLOEM, President of the Eurogroup," I am no king. We have just installed a new king in the Netherlands, and that's ... one Dutch king is plenty.
||SOUNDBITE (English) Jeroen DIJSSELBLOEM, President of the Eurogroup, "What I simply can not do is going to question what different ministers in the Eurogroup said or have done whether they were for or against any proposals etc; I am very sorry that you find that unacceptable but I simply can't go into that."
||Cutaways (2 shots)