Saturday

25th Mar 2017

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.

SMEs lack support in EU financial plan

The European Commission's plan for a capital markets union is said to be aimed at small and medium-sized enterprises, but many could end up being left out in the cold.

Eurozone chief in 'drinks and women' row

[Updated] The Netherlands' Jeroen Dijsselbloem faces calls for resignation after saying that crisis-hit countries in southern Europe spent "money on drinks and women" before being helped by others.

Stolen Russian billions ended up in EU states

Illicit money flowing out of Russia ended up in almost every single EU state, an investigation has found, posing questions on the integrity of Europe’s banking systems.

Stakeholders' Highlights

  1. European Gaming & Betting Association60 Years Rome Treaty – 60 Years Building an Internal Market
  2. Malta EU 2017New EU Rules to Prevent Terrorism and Give More Rights to Victims Approved
  3. European Jewish Congress"Extremists Still Have Ability and Motivation to Murder in Europe" Says EJC President
  4. European Gaming & Betting AssociationAudiovisual Media Services Directive to Exclude Minors from Gambling Ads
  5. ILGA-EuropeTime for a Reality Check on International Day for the Elimination of Racial Discrimination
  6. UNICEFHuman Cost to Refugee and Migrant Children Mounts Up One Year After EU-Turkey Deal
  7. Malta EU 2017Council Adopts New Rules to Improve Safety of Medical Devices
  8. Nordic Council of MinistersNordic Energy Research: How to Reach 100 Percent Renewable Energy
  9. Party of European SocialistsWe Must Renew Europe for All Europeans
  10. MEP Tomáš ZdechovskýThe European Commission Has Failed in Its Fight Against Food Waste
  11. ILGA-EuropeEP Recognises Discrimination Faced by Trans & Intersex People
  12. Nordic Council of Ministers25 Nordic Bioeconomy Cases for Sustainable Change