European Union Economic and Monetary Commissioner Olli Rehn said there won’t be a repeat of the tax on bank deposits that was imposed as part of Cyprus’s aid program.
Asked whether a future EU-mandated bank levy can be categorically ruled out, Rehn said that “it can and there is no concrete case where it should be considered.”
Speaking in an interview in Brussels early today after euro finance chiefs worked out the 10 billion-euro ($13 billion) Cypriot package, Rehn said he doesn’t expect an adverse market reaction to the precedent-setting tax on deposits both above and below the insured limit of 100,000 euros.
“Market forces understand that the sheer size of the problem of the Cypriot banking sector and its troubles were so huge that we needed to take very substantial measures,” Rehn said. “This kind of stability fee is clearly a much better choice from the point of view of financial stability and Cypriot citizens than a full-scale bail-in, which would have led to very chaotic consequences in the Cypriot economy.”
Bloomberg
olli Rehn, it’s only unelected lunatics like yourself that beleive that the euro would work, you can give it as much medicine as you like but it will die eventually. Look around you all over Europe people are suffering guess why? Still cant work it out? Well, here is the answer the Euro. Oh and by the way what gives you the right to tax my mother (84 year of age) just because she worked hard and banked with the Bank of Cyprus .I bet you will be ok in your retirement for being an overpaid clueless idiot.