Friday

29th Apr 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.

Investigation

VW will not publish emissions cheat report

Volkswagen said it would keep its preliminary report into the emissions scandal secret because publishing it would “present an unacceptable risk” to the firm.

Stakeholders' Highlights

  1. European Roundtable of IndustrialistsDigitising European Industry
  2. Counter BalanceParliament Gets Tough on Control EU Bank's Funds
  3. ICRCSyria: Aleppo on the Brink of Humanitarian Disaster
  4. CESIWorld Day For Health and Safety at Work: Public Sector Workers in The Focus
  5. EFABasque Peace Process-Arnaldo Otegi Visits the European Parliament
  6. EscardioChina Pays Price of Western Lifestyle With Soaring Childhood Obesity
  7. Centre Maurits CoppetiersThe Existence of a State is a Question of Fact, Not a Question of Law
  8. Martens CentreJoin Us at The Event: Prospects For EU Enlargement After 2019
  9. ICRCSyria: Aid for Over 120,000 People Arrives in Besieged Town Near Homs
  10. Counter BalanceHighway to Hell: European Money Fuelling Controversial Infrastructure Projects
  11. EPSUResponds To Reported €300 Million McDonald’s Tax Bill in France
  12. Access NowAcademics and Privacy Groups Ask Obama to Reject Anti-encryption Law

Latest News

  1. EU fiscal rules, migrants and Belgium's trick
  2. EU should call out Bangladesh on workers' rights
  3. Kosovo: Living in a ghetto on the EU fringe
  4. War crimes law poisons Serbia accession talks
  5. Italy and Austria try to calm tensions on Alpine pass
  6. French MPs call to lift Russia sanctions
  7. EU sides with embattled Greek PM in bailout talks
  8. Former EU commissioners to testify in emissions probe