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Still why 5.8 billion? Why not 4.8 billion or whatever?

They had to come up with a figure. Negotiation 101: When you are the more powerful party to a negotiation, when the other side's alternative to negotiated settlement is sufficiently poor, and when you have no fair, objective or even explicable model by which to determine what figure to arrive at, come up with a nonsense and stick to it.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Mar 19th, 2013 at 02:35:06 AM EST
[ Parent ]
They asked for EUR 10 bn to come from Cyprus, and agreed to count towards that some privatisation receipts, and future income from the increase in corporate taxes. The 5.8bn is the gap remaining.

Wind power
by Jerome a Paris (etg@eurotrib.com) on Tue Mar 19th, 2013 at 05:00:21 AM EST
[ Parent ]
Yes, but then you could just demand 13.5 or 14.5% corporation tax rate, calculate higher future income and accept a lower contribution from the depositors.

>They had to come up with a figure.<

But that is my point: If the figure is somewhat arbitrary anyway, why not change it?

And regarding the art of the negotiations: If you are the more powerful party anyway, you have more not less room for flexibility.

by IM on Tue Mar 19th, 2013 at 05:40:55 AM EST
[ Parent ]
Not if your demands are off-the-wall insane and flatly illegitimate by any conceivable objective standard.

Such as attaching conditionalities to the central bank doing its job.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Mar 19th, 2013 at 12:47:34 PM EST
[ Parent ]
If the figure is somewhat arbitrary anyway, why not change it?

Because you have to pretend you know what you're doing?

by gk (gk (gk quattro due due sette @gmail.com)) on Tue Mar 19th, 2013 at 01:34:33 PM EST
[ Parent ]

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