NEWS

European Parliament chief Schulz slams Cyprus bailout process as ‘no way to do business in EU’

European Parliament President Martin Schulz has welcomed the bailout deal for Cyprus but labelled the way it was arrived at as “no way to do business in Europe.”

“It has brought us back from the edge,” said Schulz in a statement in the wake of Cyprus, the eurozone and the International Monetary Fund agreeing a deal that would see Nicosia receive a 10-billion-euro bailout in return for a painful overhaul of its banking sector that would inflict large losses on some depositors.

“This agreement should allow for Cyprus’ public finances and economy to enter a sustainable path. It is especially encouraging that small savers will be protected… Cyprus has avoided a catastrophe and financial meltdown and the euro zone has avoided further turmoil,” he added.

However, the European Parliament president was scathing in his criticism of the way the Eurogroup, European Commission and European Central Bank had handled the negotiations with Cyprus.

“The case of Cyprus offers lessons: First, we need a banking union for the euro zone in place as soon as possible. Second, the Cypriot case show that is high time to tackle tax coordination.

“Third, the way the Cyprus case was handled is no way to do business in the EU. Negotiations lacked transparency, democratic accountability and were badly communicated,» he said.