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Cyprus Makes Big Concessions for Bailout [De Facto Loss of Sovereignty]
Spiegel.de ^ | 12/10/2012 | By Christian Reiermann and Markus Dettmer

Posted on 12/10/2012 7:20:23 AM PST by DeaconBenjamin

Dimitris Christofias had a serious look on his face as he spoke of a "gut-wrenching" decision, but a "necessary evil." The Cypriot president was not giving his people good news.

Christofias, in his televised address last Tuesday, reminded viewers of his country's darkest hour, the Turkish invasion of northern Cyprus in 1974.

In return for billions of euros, the "troika," made up of the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF), will essentially take control of the Mediterranean island.

The Cypriot government and representatives of the troika negotiated for almost five months over the terms of a €17.5 billion bailout package. A 30-page Memorandum of Understanding (MoU) dictates to Cyprus what steps it will have to take in the coming years, down to the smallest detail.

Civil servants and politicians, including cabinet ministers, will fly in economy class when traveling within Europe -- except the president of the country and the president of the parliament. Senior bureaucrats will pay taxes on new cars. And the salaries of civil servants and lawmakers will be frozen until 2016.

Representatives of the troika prescribe new hours of operation for government offices. Public offices will open punctually at 8 a.m.

The euro rescuers also addressed government revenues. The tax on fine-cut tobacco will go up from €60 to €150 per kilogram, while the beer tax will increase to €6 per degree of alcohol and hectoliter. The troika also requires a tax increase of 7 cents per liter for diesel fuel and gasoline.

Citizens will be especially hard-hit by the 2-percent increase in the value-added tax, bringing it up to 19 percent. The troika also calls for cuts in the healthcare sector, as well as reduced pensions.

(Excerpt) Read more at spiegel.de ...


TOPICS: Business/Economy; Foreign Affairs; Germany; Government; Israel; Russia; United Kingdom
KEYWORDS: cyprus; europeanunion; germany; greece; israel; russia; turkey; unitedkingdom

1 posted on 12/10/2012 7:20:31 AM PST by DeaconBenjamin
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To: DeaconBenjamin
A few years ago I met an American who was doing archaeological work in Cyprus and speaks fluent Modern Greek. When 9/11 happened she was told to get out of the country immediately as it wasn't safe to stay. I don't know if she has been able ro resume her archaeological work since then.

Considering that the Greek Cypriots are Christians and 9/11 was perpetrated by Muslims, that speaks to a serious level of anti-Americanism in Cyprus.

2 posted on 12/10/2012 8:07:00 AM PST by Verginius Rufus
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To: DeaconBenjamin

More like a de jure loss of sovereignty. The EU claims another protectorate. This game can’t go on forever until the truth comes out.


3 posted on 12/11/2012 11:59:09 PM PST by Olog-hai
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