Merkel: Cypriot depositors must share responsibility

German Chancellor Angela Merkel stated that all depositors in Cypriot banks should share the responsibility of bailing out the state.

Addressing an election rally on Saturday night, Merkel said that “anyone having their money in Cypriot banks must contribute in the Cypriot bailout. That way those responsible will contribute in it, not only the taxpayers of other countries, and that is what’s right.”

Her finance minister, Wolfgang Schaeuble announced he will ask the Bundestag for a preliminary approval of the Eurogroup decision for lending 10 billion euros to Nicosia. That approval should come as early as possible, said Schaeuble.

Deutsche Welle reported on Sunday that even the painful package of bank account haircut and tax hikes on interest and corporate earnings may not be enough to convince German deputies to back the bailout.

Cyprus President Nicos Anastasiades operates on a super-tight timetable in his effort to convince the island’s Parliament and the people of the necessity of the bailout measures imposed by the Eurogroup.

After 8 p.m. on Sunday he will deliver his keynote televised address to the people, having shaken off European Central Bank pressure for the bill to be passed on Sunday.

On Monday at 11 a.m. Anastasiades will inform deputies behind closed doors in Parliament, ahead of the plenary session at 4 p.m. for the debate and voting on the bill.

A major rally is being prepared for Monday afternoon outside Parliament during the debate of the bill, with AKEL general secretary Andros Kyprianou saying that people are ready to protest and will not need any party motivation.

Meanwhile a top governing party official confirmed the idea of offering depositors some of the takings from hydrocarbon sales.

“It is possible that future revenues from natural gas will be interconnected the losses of depositors who will have their bank account taxed,” said alternate president of ruling Democratic Rally, Averof Neofytou.

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