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Cyprus bailout tax causes alarm around the world

Cypriot security guards stand outside the parliament building in Nicosia on March 18, 2013.

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European markets are lower this morning on news out of Cyprus. In order to obtain an EU bailout, the country introduced a proposal over the weekend to tax its bank depositors up to 10 percent, though analysts expect the final levy to be closer to 3 percent.

Julia Coronado, chief economist with the investment bank BNP Paribas, joins Marketplace Morning Report host Jeremy Hobson to explain how the situation in Cyprus is rippling out to other economies around the world.

About the author

Julia Coronado is chief economist at BNP Paribas.
Scott Hagaman's picture
Scott Hagaman - Mar 18, 2013

Well, Russia is probably relying on the 100-plus years of goodwill they have with Germany to bail out their Cyprus accounts. Oh, wait... !

wilson1's picture
wilson1 - Mar 18, 2013

Cypriot President Demetris Christofias said quite clearly on 4th December that the Mediterranean island nation would submit to the EU led by the Germans...this is only the beginning....In fact, he used the term, "heartfelt pain" when acknowledging before the People that the government is prepared to sign the troika's memorandum of understanding with all the terms yet to be worked out....hey, given Russian aid in the past, at least the Cypriots do not have to sell government assets off at least not now....

It has all but yielded itself to Brussels and the Germans....

W/Germany's new strategic intent in filling the void left by a Chicago city street slicker called, Barry Obama whose on pledge is to Hussein Obama and his socialist and marxist Kenyan pals has weakened the US ever so now with a $16.7 trillion budget deficit which is prompting cross border currency exchanges other than in dollars and global savvy bankers and investors beginning to question US economic policy with the inability to cut spending....Germany is taking advantage of such weakness and nurturing relationships wherever possible to create a Middle East Confederate of States which will ally with Germany....

The Germans are smart as they know the strategic history of Cyprus and as Islamic fundamentalists are on the rise, the Germans intend to use Cyprus as a way to leverage influence in the region. History proves that more than one crusade has been launched from Cyprus and more to sail off....

Keep a weary eye on the Germans who will like in history bring us all to War!

Bravo! God Bless us all!

Xpisto