Tuesday

31st May 2016

Cyprus bailout only next year, Germany says

  • Cypriot leader Christofias (r) is in a hurry - the Germans less so (Photo: consilium.europa.eu)

Links with Russia and other "questions" regarding the Cypriot financial sector are likely to delay a bailout decision until 2013, the German finance minister has said.

"So far discussions between the troika and Cyprus have advanced very slowly. That is why we will probably be able to look deeper at the bailout request only in 2013," German finance minister Wolfgang Schaeuble told Welt am Sonntag on Sunday (11 November).

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

He singled out the "relationship to foreign lenders, including Russia" as one of the issues that need to be "clarified."

Cyprus is seeking a bailout of up to €15 billion after its banks were hit hard by the Greek crisis.

But a leaked report from the German foreign intelligence service (BND) last week warned against giving German taxpayers' money to a country where Russian and Ukrainian oligarchs launder their money.

Nicosia already received a €2.5 billion bailout from Moscow after the 2008 financial crisis and for a while claimed it could do without EU help, hoping Russia would once again come to its aid.

Schaeuble refused to comment further on the money-laundering concerns, but said "all questions need to be clarified" in order to take "responsible decisions" which he can defend to the German public.

A Cypriot source told this website that neither the troika nor any other member state has officially requested information on the money laundering suspicions.

"We want a deal as soon as possible and we think it's possible to reach an agreement with the troika this week," the source said.

The Cypriot finance minister is to give a "state of play" on troika negotiations later on Monday when the eurogroup of finance ministers meets in Brussels.

But the Cypriot source added that "no decisions are expected" at the meeting.

A senior EU official briefing journalists in Brussels on Friday said Cypriot authorities are keen to have the bailout deal - which may involve painful public sector cuts and income tax hikes - in place before presidential elections in February next year.

Finance ministers baulk at tax-avoidance rules

Member states will discuss again in June a proposed directive to outlaw practices used by large companies to avoid paying taxes. Meanwhile, the European Parliament makes progress on its probe of Panama Papers.

Stakeholders' Highlights

  1. EJCWelcomes EU Commission Code of Conduct on Countering Illegal Hate Speech Online
  2. Access NowEDRi & Access Now Withdraw From the EU Commission IT Forum Discussions
  3. EJCCalls on EU Parliament to Take Action Against MEP who Compared Israelis to "a rash"
  4. EU Sustainable Energy WeekHave Your Say On Europe's Energy Future At Our High-Level Policy Conference.
  5. CESIUpcoming On June 14: CESI@Noon On ‘Labour Market Integration Of Regugees’
  6. ACCAEducation and Training 2020 - Giving Young People the Workplace Skills They Need
  7. EPSUTrade Unions Back New Undeclared Work Platform
  8. European Healthy Lifestyle AllianceCould targeting children’s fitness boost academic performance?
  9. World VisionDeclares the World Humanitarian Summit a Positive Step in a Longer Journey to Ending Need
  10. EJCPresident Dr. Moshe Kantor on Brexit and the Jewish Question
  11. Swedish EnterprisesNew Rules For Posted Workers - Better Protection or the End of Posting ?
  12. World VisionWhy The EU Needs to Put Children at the Centre of Emergencies - In Their Words

Latest News

  1. EU never used power to scrutinise emissions labs
  2. EU firms free to ban Muslim headscarves, jurist says
  3. Stop dreaming of integrated EU utopia, says Tusk
  4. Poland questions legality of EU probe
  5. German NGOs want judges to probe EU-Canada trade deal
  6. EU watchdog calls for fines on shady lobbyists
  7. 2015 was 'a bad year' for EU human rights
  8. Deal with Greece will not work, says Guy Verhofstadt