BELGIUM: Cyprus must come up with an alternative rescue solution, European Commission says

Record ID: 862940

  • Title: BELGIUM: Cyprus must come up with an alternative rescue solution, European Commission says
  • Date: 20th March 2013
  • Summary: BRUSSELS, BELGIUM (RECENT) (REUTERS) EXTERIOR OF EUROPEAN COMMISSION BUILDING EUROPEAN FLAGS
  • Embargoed: 4th April 2013 13:00
  • Keywords:
  • Location: Belgium
  • City:
  • Country: Belgium
  • Topics: International Relations,Economy,Politics
  • Reuters ID: LVABER5F9SA6XTWGOHV9026POOUB
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  • Story Text: The European Commission said on Wednesday (March 20) it was now up to Cyprus to find an alternative rescue plan after the Mediterranean island's lawmakers overwhelmingly rejected a proposed levy on bank deposits as a condition for a European bailout.
    "The Commission made clear in the Eurogroup before the vote in the Cypriot Parliament that an alternative solution respecting the financing parameters would be acceptable, preferably without the levy on deposits below 100.000 euro," European Commission spokesperson Olivier Bailly said.
    "It's their responsibility, it's for them to tell us how they see things now," he added.
    The vote by the small state's legislature was a stunning setback for the 17-nation euro zone, after lawmakers in Greece, Portugal, Ireland, Spain and Italy had repeatedly accepted unpopular austerity measures over the last three years to secure European aid.
    The rejection, with 36 votes against, 19 abstentions and one absence, brought the east Mediterranean island, one of the smallest European states, to the brink of financial meltdown.
    EU countries said before the vote that they would withhold 10 billion euros in bailout loans unless depositors in Cyprus shared the cost of the rescue, and the European Central Bank has threatened to end emergency lending assistance for teetering Cypriot banks.
  • Copyright Holder: REUTERS
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