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I don't understand the politics of this thing.

The member countries of the ESM will still give 10 billion, right? And the special tax will bring the needed sum down from about 15 billion to about 10 billion. That would reduce the german share from ca. 4.5 billion to ca. 3 billion.

And that would change what exactly in political terms?

"For Wales? Why Richard, it profit a man nothing to give his soul for the whole world. . . but for Wales!"

by IM on Sun Mar 17th, 2013 at 03:11:33 PM EST
Compromises can end up in something no one wants. So that is a possibility.

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by A swedish kind of death on Sun Mar 17th, 2013 at 04:10:19 PM EST
[ Parent ]
You took the thoughts out of my mind - it's easy to say (as some have) that bailing out Russian gangster money is not politically acceptable, but given that 10 billion is still being put into the bailout, I'm not sure how this alters the politics at all.

Oh, we bailed out the gangsters, but we charged them 10%?

Surely Bild isn't going to be pacified by that?

by Metatone (metatone [a|t] gmail (dot) com) on Mon Mar 18th, 2013 at 05:29:26 AM EST
[ Parent ]
The gangsters had a heads-up a week ago. A lot of Russian money has already moved elsewhere.

As for the politics - apparently the aim is to minimise any possibility of senior bond-holder losses, to push depositor money northwards, and to make Cyprus a docile client state whose interesting mineral resources can be extracted with a minimum of unfortunate local enrichment.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Mon Mar 18th, 2013 at 07:59:14 AM EST
[ Parent ]
Why must they be protected at all costs, including demolishing deposit insurance, and at the risk of destroying the euro?

Whoever they are, they must be scarier than the Russian mafia.

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II

by eurogreen on Mon Mar 18th, 2013 at 09:15:15 AM EST
[ Parent ]