The tension between European
Union and Russia about the losses imposed on Cyprus' Banks savers have roughly mounted up after the Russian envoy to the European Union suggested that Cyprus's
banking system could collapse.
Russia condemning the bail out
as unfair faced of course the prospect of losing billions in an EU plan to bail
out Cyprus. In brief, Russian businessmen and companies are panicking behind
the possibility of a 10% levy over big capitals in deposit.
Rumors say that some member European Union Parliament replied that "this is what happen when money are saved in fiscal paradise".
Rumors say that some member European Union Parliament replied that "this is what happen when money are saved in fiscal paradise".
The rightful interest of
Russian Government for the saving of Russian VIP in Cyprus' Banks nevertheless
struggles with European Union jurisdiction over a full member of European Union
and Eurozone and reflects the willingness of European Union to fight the fiscal
paradises within its own territory, which, after all is nothing but a clear
type of unfair competition between member states of European Union.
After a deep analysis of the
circumstances, other than the destiny of Russian savings, which is part of the
risk taken by any saver, especially when the reason over the choice is to avoid
fiscal pressure, the very interesting bit in this matter attains to the destiny
of art. 50/60 of European Union Treaty. Plus the European Union decision to
provide such said levy shed more than a doubt that this kind of decision won't
be a one off, but although the reassuring statements of Mr. Dijsselbloem, can
become the first of other similar provisions and could be rolled out to other
countries.
Although such fears were
dismissed as such as sordid, nasty little anti-European propaganda, me as many
others think that this kind of decision can have a negative effect over the
extra UE investments and savings as a result of such anti - European
propaganda.
Nowadays we are facing a war
not fought by conventional weapons but fought by a new harmful gun, which means
the spread and the capability of a country to attract foreigner capitals.
Actually, I reckon that in the
European Union shouldn't be place for fiscal paradises and for countries which
are not to enforce the European laws, because the ultimate reason why the
European Union was created is to ensure equal rights, rules and obligations
allover the European Territory.
Stated that, the free movement
of capital in the EU market shall be defended as one of the prior principle of
the Single Market and is one of its inviolable 'four freedoms'. To prevent the
saver to withdraw their own money to avoid the levy to be applied is, as
Russian Government said, undemocratic.
But what I question is that
such decision was an independent decision taken by European Union ultra vires.
To be honest, against all odds
I think the Cypriot government in front of the perspective to make the saving
cuts, took the decision to not simply whack the rich.
In my opinion, the provided
levy appears to be a political move from Cypriot Government to take the bail
out, addressing all responsibilities on European Union.
On the other hand, I reckon
that the European Institution should take a clear position against fiscal
difference between states and against the lack in the legal obligation
enforcement.
Many little states, among the
new entries, enjoy a position of advantage and adopted a politic of lax fiscal
and banking policies to attract foreigner capitals and investment in damage of
biggest countries which finance with higher taxes the fund bails addressed to
such countries and often close more than one eye about the origin of before
mentioned investments.
Eventually, I am not convinced
of the utility of such levies and I don’t think that such extreme measures will
be issued in future, but I will be more convinced about that when the European
Europe will start to act as the United States of Europe, getting over contradictions
and individual interests of its members.
In conclusion, I am firmly sure that nothing similar will ever happen in a reliable country as such Germany, Italy or France, where rules are (more or less) clear and there won't be any surprise around the corner.
All right reserved
In conclusion, I am firmly sure that nothing similar will ever happen in a reliable country as such Germany, Italy or France, where rules are (more or less) clear and there won't be any surprise around the corner.
All right reserved
