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Cypriot Foreign Minister Blasts Germany's "Ruthless Decision To Wreck The Country's Economic System"

Tyler Durden's picture


And now, the blame game begins. From an interview given by the Cypriot Foreign Minister Ioannis Kasoulides to Skai TV’s New Folders program:

We were alone... That’s not to say Greece did not stand by us, as it always does, but we recognize its difficult position, as we recognize the difficult position of our Mediterranean partners. They told us behind the scenes they supported us but only Luxembourg spoke up in our favor during the Eurogroup and in general,” he added.


“France maintained silence. France’s problems might appear in the future and then it will need the help of its partners.”


It’s clear that Germany wants to impose its views on the peoples of southern Europe, which need her at the moment. The toughest decision was that for Cyprus: it was a ruthless decision to wreck the country’s economic system, which will have huge and unpleasant consequences.


Kasoulides added that the German opposition Social Democrats (SPD) had played a part by adopting a tough line on Cyprus in the country’s Parliament.


“They wanted to show the Germany taxpayers’ money would not be used to bailout Russian deposits, some of which they claimed was of dubious origin. This is where the game began.”

Remember: it is always someone else's fault. Always.

Source: Kathimerini

h/t Clav

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Wed, 03/27/2013 - 10:12 | 3381060 hugovanderbubble
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Debt Haircuts in Sovereign Portuguese Debt to be applied between 35-50%

Banco Totta Bankruns coming

Wed, 03/27/2013 - 10:15 | 3381082 Ethics Gradient
Ethics Gradient's picture

Wait for the Italian election re-run after Europe destroys Cyprus.

Wed, 03/27/2013 - 10:17 | 3381099 Ness.
Ness.'s picture

Next up.. Slovenia.  Bad debt ~ $7B about 20% GDP.  

Wed, 03/27/2013 - 10:18 | 3381111 fx
fx's picture

cyprus to the rest of the world: In short, it's germany's and everybody else's fault that our , err, 'business model' collapsed and nobody rescued us for free. Yes we were helping everybody else's citizens and corporation to hide and save taxes - but so what? let#s forget about these minor issues of the past and let's focus on our bright common future.

Wed, 03/27/2013 - 10:26 | 3381183 Rubicon
Rubicon's picture

Cant imagine why Luxembourg stood up for them!

Wed, 03/27/2013 - 10:30 | 3381206 N. B. Forrest
N. B. Forrest's picture

If it was such a bad German idea, then why did the dumbshits in Cypress go ahead with the bank holiday. 


It reminds me of my kids.  "Tommy, why did you do such and idiotic thing?"  Tommy: "Johnny told me to do it".

Wed, 03/27/2013 - 11:05 | 3381342 Going Loco
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Seriously, there is growing evidence that the Stockholm syndrome explains a great deal of what has been going on for the last few years.

Wed, 03/27/2013 - 12:36 | 3381689 Muppet Pimp
Muppet Pimp's picture

FM Kasoulides besser aufpassen seine Haltung, oder wir werden in den Panzer zu schicken!

Wed, 03/27/2013 - 12:42 | 3381721 OldPhart
OldPhart's picture

Google translated:  FM Kasoulides better watch his attitude, or we will send in the tanks!

(I only speak pidgen spanglish)

Wed, 03/27/2013 - 10:34 | 3381208 N. B. Forrest
N. B. Forrest's picture


Wed, 03/27/2013 - 10:40 | 3381237 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

And the German Inquisition will be visiting the Luxembourg banks next. This is what bullies do they pick on the smallest and weakest kids in the sandbox. You notice they don't pull the same tactics on Spain and Italy. Spain's banks have probably been in worse shape the whole time than the Cypriot's banks they went after.

Wed, 03/27/2013 - 11:40 | 3381470 zenmeister
zenmeister's picture

Don't think so. There's a lot of German money in Luxembourg. And they even speak German. So it's all perfectly legit.

Wed, 03/27/2013 - 11:45 | 3381494 Nussi34
Nussi34's picture

And Luxemburg will be part of the DM zone after the Euro implodes.

Wed, 03/27/2013 - 12:27 | 3381653 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Also a lot of foreign money. Low lying fruit usually gets picked first. Only this time German capital flight after being tipped off ahead of confiscation. The fact it is a German speaking country even better they will go along with it and keep their mouths shut without any arm twisting.

It fits right in the dieselgoboom comments about being the new euro template.

Wed, 03/27/2013 - 13:20 | 3381861 trader1
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Luxembourg will not be messed with, unless they want to bring down the clearing system for Duetsche Boerse / Eurex.

Wed, 03/27/2013 - 14:29 | 3382267 bagehot99
bagehot99's picture

Me neither. I can't see any similarities at all - Luxembourg has a totally transparent banking system, without a single penny of dubious deposits.

Wed, 03/27/2013 - 23:34 | 3384225 StychoKiller
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Yo dude(tte), give me a hit of what yer smokin'! :>D

Wed, 03/27/2013 - 10:23 | 3381100 ParkAveFlasher
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Nice little gold woody today.

Happy Birthday, Jim Sinclair.

[edit] Now silver joining in.  Why yes there is a slice of cake for you too, Mr. Sprott.

Wed, 03/27/2013 - 10:17 | 3381105 NoWayJose
NoWayJose's picture

I didn't think Grillo could ever get 50%.  After Cyprus and the words coming out of Bersani's mouth now, I am confident Grillo will get 50% in the next election.

Wed, 03/27/2013 - 10:18 | 3381107 fx
fx's picture


Wed, 03/27/2013 - 10:16 | 3381094 redpill
redpill's picture

"We are alone"

That you ever thought otherwise was your first mistake.

Welcome to ruthless big boy world.

Wed, 03/27/2013 - 10:27 | 3381184 BobPaulson
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Plus 1. How did the concept that making bad loans in every corner of the earth become normal.? Lending is not charity. The pricing of risk in this ZIRP world has trained a generation to lose all sense of who pays at the interface between shit and fan.

Wed, 03/27/2013 - 11:55 | 3381534 Mad Mohel
Mad Mohel's picture

That line struck me as odd also. How can a corrupt whore politician try to give the impression that they are like babes lost in the wilderness? The whole thing from top to bottom is farce. Jungle rules Cypriot, and you are a lowly little macaque trying to ride the German tiger while fingering the Russian bear.

Wed, 03/27/2013 - 11:18 | 3381380 Longtermnotreally
Longtermnotreally's picture

We all live in Cyprus, just don't know it yet

Wed, 03/27/2013 - 11:37 | 3381461 deKevelioc
deKevelioc's picture

The planet is in default.  Why does anyone wait for an announcement?  

Wed, 03/27/2013 - 12:04 | 3381573 TPTB_r_TBTF
TPTB_r_TBTF's picture

They are waiting for the CDS trigger.


... and waiting ... and

... waiting ... ... ...

Wed, 03/27/2013 - 10:13 | 3381069 TrumpXVI
TrumpXVI's picture

Cry me a river.

Wed, 03/27/2013 - 10:13 | 3381070 HelluvaEngineer
HelluvaEngineer's picture

So the real question then, is what the fuck are you going to do about it?

Wed, 03/27/2013 - 10:17 | 3381093 Oldballplayer
Oldballplayer's picture

The Cypriot parachute regiment will jump into Berlin.

Thats the plan. 

Its not a good plan....but at least those guys will be out of Cyprus.


Wed, 03/27/2013 - 12:08 | 3381595 TPTB_r_TBTF
TPTB_r_TBTF's picture

There is a nice grassy spot between the parliament and the chancellery.


Although,  ... it's a no-fly zone ...

but it's not like zee Germans can defend a no-fly zone.

Wed, 03/27/2013 - 10:13 | 3381071 BlueStreet
BlueStreet's picture

Next time don't build an 'economic system' based on money laundering and the results might turn out a bit better. 

Wed, 03/27/2013 - 10:38 | 3381231 Edward Fiatski
Edward Fiatski's picture

Like Lux, the City & Switzerland?


Wed, 03/27/2013 - 10:13 | 3381072 insanelysane
insanelysane's picture

The Cypriot government said they had a Plan B but didn't have the balls to do it.  Now they will be forced to go to a Plan C because the Eurozone is going to rape and pillage them and then kick them out.

Wed, 03/27/2013 - 10:26 | 3381115 scatterbrains
scatterbrains's picture

They should have corzined all the deposits and bought gold and gold mines while enforcing strict capital controls, enough that their people don't starve while waiting to get their gold back currency off the ground after which hot money would pour back in but instead they got sucked into the giant vacuum cleaner in the sky.  bye bye... who's next ?

Wed, 03/27/2013 - 14:44 | 3382360 bagehot99
bagehot99's picture

'Keeping the Euro' is a synonym for 'banging up heroin', it seems. I can think of no other reason why the Cypriots wouldn't tell the EU to go fuck themselves.

Wed, 03/27/2013 - 10:21 | 3381135 Yikes
Yikes's picture

They can't kick them out but they can sure as hell make their life so miserable that they "DOR" (Drop on Request).

Wed, 03/27/2013 - 10:35 | 3381219 BobPaulson
BobPaulson's picture

I think the definition of "rape and pillage" is more like "refuse to finance their profligacy". The needle on my sympathy meter hasn't budged. The only injustice is that other crooks have gotten away with worse, but that doesn't hold much water IMO.

Wed, 03/27/2013 - 11:47 | 3381500 Nussi34
Nussi34's picture

Looking forward for cheap and young hookers from Cyprus coming to Frankfurt working off their debt!

Wed, 03/27/2013 - 10:16 | 3381073 philipat
philipat's picture

If they see it that way, why not just default and leave The Euro? In that scenario the joint loser would be The ECB (Read, Germany) which holds Cyprus Sovereign and other Senior debt as collateral. Had they made that decision 2 weeks ago, their Business Model would have remained in place and the only haircuts would have been from the likely devaluation of the New Cyprus Pound against The Euro.

Wed, 03/27/2013 - 10:16 | 3381092 DeliciousSteak
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Perhaps they don't want to cause more misery in Greece. The links between these two are deep.

Wed, 03/27/2013 - 10:18 | 3381104 Oldballplayer
Oldballplayer's picture

Yes, perhaps the Greeks and the Turks will be able to sit down and calmly discuss a solution.

Wed, 03/27/2013 - 10:23 | 3381153 DeliciousSteak
DeliciousSteak's picture

I'm pretty sure the Turks are content on sitting on their arses and smoking hookahs while watching this Greek play.

Wed, 03/27/2013 - 10:27 | 3381192 philipat
philipat's picture

"With smokin Hookers"??

Wed, 03/27/2013 - 23:38 | 3384230 StychoKiller
StychoKiller's picture

Only vey to fly! (spread'em!) :>D

Wed, 03/27/2013 - 10:17 | 3381075 Cultural Capital
Cultural Capital's picture

EU = Greater Germany

Wed, 03/27/2013 - 10:14 | 3381080 Elijah Craig 18
Elijah Craig 18's picture

You wanted the Euro at all cost, Kasoulides... you've got the Euro. Choke on it.

Wed, 03/27/2013 - 10:15 | 3381083 Dr. Engali
Dr. Engali's picture

Who was it that decided to take on the debt in the first place? If you dance with the devil you're going to be ass raped.

Wed, 03/27/2013 - 10:40 | 3381242 BobPaulson
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Cut and paste that quote. It will save you time retyping it for the many many times you will want to repost it in the coming months, for a variety of countries and circumstances.

Wed, 03/27/2013 - 10:15 | 3381086 NoWayJose
NoWayJose's picture

It's you OWN PRESIDENT that shook hands on the deal, you fool...  You can still back out if you want to save your own country.  If all you want to do is complain about the other guy, move to America and get elected to Congress...

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