The continued division of Cyprus suits Britain’s geopolitical interests, as well as those of world powers that see the Mediterranean island as a useful pawn in a longstanding game of chess. Darren Loucaides reports from a country that wants to determine its own future.
If Greece is any guide, Merkel will vociferously demand more reforms and transparence in the banking sector. The February 10 deadline might pass. Cyprus will come up with a list of promises. Gradually the rhetoric will change. Words like “progress” will show up. “Black money” will disappear from the media. This might even culminate with a heartwarming meeting in Berlin between Merkel and Christofias. And suddenly, voting against the Cyprus bailout, once a safe bet, will become politically risky. It worked before. It might work again. If not, Cyprus with all its “black money” might become the first Eurozone country to go bust.
Money laundering is further facilitated by the ease with which rich Russians can obtain Cypriot nationality—and thus freedom to establish themselves financially anywhere in the EU, which according to the BND, 80 Russian oligarchs have already done.
According to the Russian Embassy in Cyprus, via Kathimerini: In the last five years alone, the Russian economy has seen Cypriot investments of over $52 billion, of which $41.7 billion was invested in the 2007-10 period, or 2.7 times more than German investments in Russia in the same period.
Jan Hurris artikel 6.3.2013 "Rehn varoitt [viime viikonloppuna der Spiegelin haastattelussa], että ilman muiden euromaiden tukea Kypros on vaarassa ajautua "hallitsemattomaan vararikkoon" ja hyvin suurella todennäköisyydellä eroon eurosta. Näin komissaari Rehn tuli muistuttaneeksi, että euro on yhä veitsen terällä, ja siitä, ettei euron peruuttamattomuudesta sittenkään ole takeita. Jos edes Kypros lähtee, on unelma ikuisesta eurosta mennyttä."
Global Financial Integrity - Raymond Baker "As European and Russian officials currently weigh the merits of bailing out the Cypriot economy, GFI's study raises serious concerns about the legitimacy of Cyprus' financial sector. The report notes that Cyprus, a tiny island nation with a GDP of just $23 billion, is the largest source and destination of Russian foreign direct investment (FDI) from 2009-2011. According to the IMF, Cyprus sent $128.8 billion in FDI into Russia in 2011, more than 5 times the size of Cyprus' GDP. "The recorded FDI positions merely reflect the round-tripping of prior illicit deposits from Russia into Cyprus," write Dr. Kar and Ms. Freitas in the report."
Yle Uutiset | yle.fi 14.3.2013 Yli 30 miljoonaa Venäjän valtiolta kavallettuja rahoja päätyi pestäväksi Kyprokselle, joka odottaa parhaillaan päätöstä EU:n tukipaketista
Attac France 18.3.2013: "En revanche, que l'Union européenne valide une taxe exceptionnelle et progressive sur les grandes fortunes pour rembourser la dette des banques constitue un précédent très intéressant. Il est donc possible de faire payer les riches par une méthode ô combien expéditive, un prélèvement direct voté par le Parlement sur les avoirs bancaires, y compris les produits financiers. Le réseau des Attac d'Europe demande depuis plusieurs mois la mise en place d'une taxation exceptionnelle sur les grandes fortunes pour réduire les besoins de financement des Etats. Le précèdent chypriote, avec toutes ses limites, montre qu'il suffit d'une volonté politique."
Myriam van der Stichele: "A short edition of the EU financial reform Newsletter provides the background of the latest financial and political crises in different EU countries, with focus on the Cyprus crisis. This newsletter was finalized just before the Cypriot parliament rejected the deal and since the quick events have been changing every day, about we will provide an update later."
"We have clarified with the Cyprus authorities that this levy, as proposed in the draft law, will have no effect on customer deposits held with the Overseas Branches of Cyprus Banks."