The Cyprus agreement does not require ratification by the Cypriot Parliament

European leaders reached an agreement with Cyprus early on Monday morning that closes down the island's second-biggest bank and inflicts huge losses on wealthy savers. Russians would lose billions of Euros under draconian terms that are aimed at preventing the Mediterranean tax haven becoming the first country forced out of the single currency. "Herman Van Rompuy has brokered an agreement between the troika and Cyprus," said an EU source, referring to the president of the European council and Cyprus's trio of creditors: the Commission, the European Central Bank and the International Monetary Fund. A meeting of euro zone finance ministers that started six hours late reached an agreement in the early hours of Monday morning to finalize the fine print of the deal. Savers with deposits of less than 100,000 (85,000) would be spared but it was thought there would be heavy losses inflicted on the deposits of the wealthy. Laiki, or Cyprus Popular Bank, is to be closed, with its good assets transferred to Bank of Cyprus, the country's biggest bank, where savers would suffer big losses in return for equity shares. Those with more than 100,000 in Laiki would also be hit hard.

A short recap of recent events

Negotiations got under way amid a hardening of the stance by the IMF and Germany, which insisted that depositors must take the hit for bailing out the euro zones latest crisis economy. There were signs of panic in Cyprus as a 100 limit was imposed on ATM withdrawals, with more stringent capital controls to follow if the deal is finalized....This does not require ratification by the Cypriot parliament. So the will of the EU is imposed by force and thousands of depositors in Cypriot banks will have their money stolen all in the cause of the mighty Euro.

The Bruxelles politicians PPE the party in power

The EPP Group considers that the agreement reached by the Euro group and the Cypriot authorities on the key elements for a future macroeconomic adjustment program for Cyprus is better than last week's option and averts the country from disorderly bankruptcy. We acknowledge that the decision is still hard and far-reaching for the Cypriot people. We welcome the fact that there is an agreement that offers Cyprus a European solution. The agreement will assist Cyprus to overcome the problems accumulated over the past years. Let us not forget that two years ago, the former Cypriot Government refused the

help offered by the European Commission and preferred the Russian loan", said EPP Group Chairman Joseph Daul MEP and Vice-Chairwoman Corien Wortmann-Kool MEP. "I am confident that the new Cypriot Government, under the responsible leadership of President Nikos Anastasiades, will do its utmost to enforce everything needed in order to restructure the Cypriot economic model in such a way that will lead to sustainable growth with sound public finances and will safeguard financial stability", Chairman Daul said. Corien Wortmann-Kool MEP, Vice-Chairwoman of the EPP Group responsible for Economy and Environment, said: "The state will have to reform its excessive large banking sector in order to be sustainable. Next to that, structural reforms are needed in order to build a strong foundation for the economy and secure sustainable economic growth in the long run. "The EPP Group calls on the European Commission to further explore all available means, such as already-existing funds and programs, to help the Cypriot economy start growing again. As soon as we have the Banking Union in place, this kind of situation can be better dealt with and will not be repeated", Wortmann-Kool added.

In Conclusion
Angela Merkel said last year, if The Euro collapsed "there might not be peace in Europe in sixty years"....Sounds like a threat...The Germans are sending out a clear message. Get your finances in order if you want to be treated as a Euro zone member. There can be no sound money unless and until all the member states of the Euro zone play by German rules. The eu allowed countries to break the entry conditions of joining the EZ. They then allowed countries to break the ficsal stability pact that was supposed to hold everyone together. Germany were the first to break the deal, so you cant blame the med countries from realizing that the rules do not apply. On my part, I do not support the incompetence theory. The EU knew exactly what it was doing. By providing enough rope the smaller weaker countries have been allowed to hang themselves. If there was any real motive to have all the EZ countries performing the EU would and should have stepped in long before the situation became serious. They had the law in the terms of the treaties to force the med countries to comply, but did not take any action. They are complicit in problem that these countries face and are now taking advantage to destroy competition and asset strip where they can. Date: 03.25.2013

Mircea Halaciuga, Esq. 0040-724.58.1078 www.SIPG.ro