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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hugovanderbubble's picture


Debt Haircuts in Sovereign Portuguese Debt to be applied between 35-50%

Banco Totta Bankruns coming

Ethics Gradient's picture

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

Ness.'s picture

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

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.

Rubicon's picture

Cant imagine why Luxembourg stood up for them!

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".

Going Loco's picture

Seriously, there is growing evidence that the Stockholm syndrome explains a great deal of what has been going on for the last few years.

Muppet Pimp's picture

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

OldPhart's picture

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

(I only speak pidgen spanglish)

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.

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.

Nussi34's picture

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

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.

trader1's picture

Luxembourg will not be messed with, unless they want to bring down the clearing system for Duetsche Boerse / Eurex.

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.

StychoKiller's picture

Yo dude(tte), give me a hit of what yer smokin'! :>D

ParkAveFlasher's picture

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.

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.

redpill's picture

"We are alone"

That you ever thought otherwise was your first mistake.

Welcome to ruthless big boy world.

BobPaulson's picture

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.

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.

Longtermnotreally's picture

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

deKevelioc's picture

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

TPTB_r_TBTF's picture

They are waiting for the CDS trigger.


... and waiting ... and

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

HelluvaEngineer's picture

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

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.


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.

BlueStreet's picture

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

Edward Fiatski's picture

Like Lux, the City & Switzerland?


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.

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 ?

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.

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).

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.

Nussi34's picture

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

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.

DeliciousSteak's picture

Perhaps they don't want to cause more misery in Greece. The links between these two are deep.

Oldballplayer's picture

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

DeliciousSteak's picture

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

StychoKiller's picture

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

Elijah Craig 18's picture

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

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.

BobPaulson's picture

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.

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...