While senior bondholders are left untouched, ordinary depositors will be forced to pay up in the EU-ECB-IMF bail-in of Cypriot banks as part of the so-called 'bailout' of Cyprus, writes UKIP Economics Spokesman Godfrey Bloom MEP.
• News that thousands of British depositors in Cypriot Banks are to have their money stolen by the EU in the so-called bailout of Cyprus is astounding.
British bank depositors in Cypriot banks will have to pay a one off levy of between 6.75% and 9.9% on their deposits as part of a new Eurozone-IMF bail in of Cypriot Banks.
This is just incredible. It is EU theft with a fancy name.
Senior bondholders of these banks are left untouched while thousands of British savers in Cypriot banks shall have their hard-earned savings stolen without their consent.
The Troika of EU, IMF and ECB of course would never hurt their big friends in the big banks. Goldman Sachs which has provided the EU with two recent Prime Ministers to impose austerity on Greece and Italy will not be touched.
This is Corporate Welfare on crystal meth EU style. The Eurozone ministers who agreed this deal should be forced to go to Nicosia on Tuesday and take the money themselves. I would love to see how they get on face to face... especially with the many Russian depositors of the Cypriot banks.
Once again it is the ordinary and innocent people in Cyprus who will be bearing the brunt of the hardship. An austerity is being imposed upon them just as poverty and unemployment has been placed on the shoulders of millions across the EU already.
The financial crisis created in great part by the ill constructed euro is now spilling over to a social and economic crisis resulting in massive unemployment. What is surprising is that David Cameron and George Osborne of the Tory Party are the great advocates of fiscal union outside the Eurozone.
Is David Cameron just going to stand idly by and allow the money of British citizens to be removed from their bank accounts? I remember that Gordon Brown was not so slow to act when Icelandic banks went belly up.
The approval of this practice by the EU should send shivers down the spine of any bank depositor in the Eurozone. It really will have large ramifications for banking stability in the EU- and none of them good. A run on Cypriot banks has already started. Does this now mean that depositors in other Eurozone banks will also be tapped by the EU? This move really does set a dangerous precedent.
That depositors will be compensated by equity in the Cypriot banks is irrelevant. They did not ask for shares in a bank, nor was their consent ever given. In a way, they are like the millions of Britons who were never asked their consent to join the EU's political union. This episode shows why the quicker Britain pulls out of the EU the better.