Sunday

26th Mar 2023

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).

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

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.

'Final warning' to act on climate change, warns IPCC

The United Nations's report — synthesising years of climate, biodiversity, and nature research — paints a picture of the effects of global warming on the natural world, concluding there is "no time for inaction and delays."

Opinion

EU's new critical raw materials act could be a recipe for conflict

Solar panels, wind-turbines, electric vehicle batteries and other green technologies require minerals including aluminium, cobalt and lithium — which are mined in some of the most conflict-riven nations on earth, such as the Democratic Republic of Congo, Guinea, and Kazakhstan.

Latest News

  1. EU's new critical raw materials act could be a recipe for conflict
  2. Okay, alright, AI might be useful after all
  3. Von der Leyen pledges to help return Ukrainian children
  4. EU leaders agree 1m artillery shells for Ukraine
  5. Polish abortion rights activist vows to appeal case
  6. How German business interests have shaped EU climate agenda
  7. The EU-Turkey migration deal is dead on arrival at this summit
  8. Sweden worried by EU visa-free deal with Venezuela

Stakeholders' Highlights

  1. Nordic Council of MinistersNordic and Baltic ways to prevent gender-based violence
  2. Nordic Council of MinistersCSW67: Economic gender equality now! Nordic ways to close the pension gap
  3. Nordic Council of MinistersCSW67: Pushing back the push-back - Nordic solutions to online gender-based violence
  4. Nordic Council of MinistersCSW67: The Nordics are ready to push for gender equality
  5. Promote UkraineInvitation to the National Demonstration in solidarity with Ukraine on 25.02.2023
  6. Azerbaijan Embassy9th Southern Gas Corridor Advisory Council Ministerial Meeting and 1st Green Energy Advisory Council Ministerial Meeting

Join EUobserver

Support quality EU news

Join us