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But even as Schäuble continued to defend his position, claiming "The levy on deposits under €100,000 was not an invention of the German government", the Eurogroup begged to differ. Although last Sunday in an interview on public tv ARD, Schäuble directly blamed the European Central Bank, the European Commission and the Cypriot government for involving tax small savers (anyone but him, basically) ECB board member Joerg Asmussen rejected Schäuble's accusations.

He countered: "In the last days it was not the ECB that pushed for this special structure that was chosen, it was the result of the negotiations in Brussels." And pushing hard for 40% in that meeting (with no transcript record of anyone batting for the little guy) was....Wolfgang Schäuble.

Then again, it seems Mr Asmussen himself is being economical with the truth: "One should not, through the wrong actions in Cyprus, put in risk what has been achieved at high political and financial risk in the eurozone in recent years," Asmussen pronounced pompously. But the WSJ writes this morning that Asmussen was the one who, in the early hours of Saturday threatened to cut off Cyprus' two largest banks from the ECB's emergency funding if a deal was not achieved.

Are these meetings really not minuted?

by ThatBritGuy (thatbritguy (at) googlemail.com) on Tue Mar 19th, 2013 at 08:36:46 AM EST
[ Parent ]
If there are minutes they will be released in 50 years' time...

Now seriously, the secrecy of Council deliberations (and even of the results of votes in the Council, given that Governments have made a habit of blamit "Brussels" for decisions they voted for at Council) has been a sticking point for a long time, given the legislative function of the Council.

guaranteed to evoke a violent reaction from police is to challenge their right to "define the situation." --- David Graeber citing Marc Cooper

by Migeru (migeru at eurotrib dot com) on Tue Mar 19th, 2013 at 10:05:58 AM EST
[ Parent ]
Since the important negotations happened in smaller circles anyway, minutes of the big official meetings wouldn't have helped much.

According to this report titled a scapegoat named Schäuble - it happened this way:

http://www.sueddeutsche.de/wirtschaft/belastung-von-kleinsparern-in-zypern-ein-schwarzer-peter-namen s-schaeuble-1.1627975

  • the commission proposed  a tax of 3% up to 100,000 euro, up to 500,000 5%, above that 7%. Netting two-three billion euro

  • Largarde proposed to take 30-40% from accounts higher then 100,000 euro. Same with senior bonds. That would have resulted in seven billion euro.

Schäuble supported Largarde because he wanted the seven billion.

In the end Schäuble did go down to something like higher then 18%.

And then they compromised on the commission proposal just with higher rates, getting the famous 5.8 billion

 

by IM on Tue Mar 19th, 2013 at 10:43:05 AM EST
[ Parent ]

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