Cyprus: Don’t touch my money
Tstable economies will support, revive and sustain sick economies. The stimulus package has failed in US and it will not work the EU and Cyprus. The dirty game of looting taxpayers’ money in the name of Europe must stop. The lack of consensus on austerity and spending policies at political level has resulted in policy vacuum. It has allowed Germany to suck hundreds of billions of tax Euros that were pumped into the failing economies of Europe including Greece, Italy and Spain. The flow of capital shows that they are being spent in Germany while the taxpayers pay for it in failing economies and loan is piling up for their future generations. The money should be spent in their countries to revive their economies, welfare and job creation. The stronger economies of Europe should not benefit from the tax money and loan money of weaker economies in the Union. The use of weaker states tax money to sustain economies of stronger economies of Europe must end.
The imposition of levy on Cyprus is anti-democratic. The pro-EU voices are using Cyprus to define the concept of ‘pooled sovereignty’ as controlling political, constitutional and democratic rights of member states. This undermines the spirit of the union and the past practice clearly show that cooperation in EU is restricted to trade and commerce only. Europe that like public, Cyprus parliament was turned into a spectator, while troika decided the fate of an independent country. It was violation he Cyprus government is push ing ahead with its EU backed levy plan on bank deposits despite protests and public outcry demanding ‘don’t touch my money’. The President of Cyprus had defended plan for the greater good of the country and EU. The political experts have criticized the levy and the capital control putting restrictions on accountholders a dangerous trend. The wealthy Russians ($31bn estimated deposits) are now moving their money from Cyprus. Cypriot heist may have pouched golden egg but in the process slaughtered the goose. The financial experts have rejected the solution to overcome Europe’s economic crisis.
Cherry picking will not revive the EU economy. The troika (Cyprus government, the EU and the IMF) wants to make Cyprus a test case for rest of Europe. The success in Cyprus will not guarantee similar results in other EU member states. Primarily, Cyprus was a tax haven and the majority of account holders were foreigners. The same policy cannot be applied to UK, Spain, Italy or other more powerful EU member states. Brussels and the Central Bank of Europe are using double standards. They are sacrificing weak economies to save stronger economies under the logic of ‘trickledown effect’ where of the agreed EU parameters which do not allow undermining of soverignity votes.
The imposition of levy on Cyprus is anti-democratic. The pro-EU voices are using Cyprus to define the concept of ‘pooled sovereignty’ as controlling political, constitutional and democratic rights of member states. This undermines the spirit of the union and the past practice clearly show that cooperation in EU is restricted to trade and commerce only. Europe that like public, Cyprus parliament was turned into a spectator, while troika decided the fate of an independent country. It was violation of the agreed EU parameters which do not allow undermining of soverignity votes. Furthermore, the every member state has the right to veto. The major economic policies are domain of parliament. The decision of imposing austerity measures by the EU and levy by president without approval of the parliament is illegal, undemocratic and unconstitutional. The jury on fate of levy policy in Europe is still out. Moscow has condemned the move as counterproductive. Cyprus deal will only promote corruption. The math shows that Cyprus government is likely to earn more on the offshore deposits than the EU bailout. The lack of transparency about details of the levy and its spending is the real issue. There are fears that the earnings will be lost to corruption. The likely collusion between authorities and powerful lobbies in the country such as unions will skim the benefits and leave ordinary Cypriot taxpayer to face aus- terity-axe and repay the loans. Banking reforms are must. The banks are soaking up all kinds of money in the modern economies. The stimulus packages in EU member states like Spain, Italy or for that matter in US were given to banks on the assumption that they will revive the businesses and reach the Main Street. But the reports show that banks used the stimulus money to pay bonuses, overcome their losses and correct their inventories. Reportedly, the stimulus packages given to western banks from taxpayers’ money have exceeded 2.27 trillion dollars. It is now clear that collusion between politicians, bankers and the technocrats was to save ‘too big to fail’ banks from bankruptcy not the public. Austerity versus spending is a hoax to cover the theft. Cyprus is its latest victim. If governments are serious about nation building, economy and individual welfare, they have to restore traditional banking, bring banks under state control, recover looted wealth from bankers, end casino banking, and adopt independent economic policies.
Cyprus levy has undermined foundation of modern state. The retrospective imposition of levy on bank deposits has destroyed the faith of individual in modern state and its institution. It is now the constitutional, moral and democratic duty of state and its institutions to scrap the law to restore trust of citizens in state. Cyprus robbery is likely to force public to review stay in EU.