It's absolutely disgusting behaviour and, no matter what spin the EU put on it, it's nothing but blatant robbery. Firstly, how are they going to distinguish between savings and current accounts? Secondly, will people with multiple accounts will be robbed multiple times?
I'll be very impressed if there isn't a massive southern-Europe-wide run on banks tomorrow.
It's an insane thing to do, because it's essentially telling people in Spain and Italy to get their cash out NOW.
Yep exactly. I'm not looking forward to what happens around the Med. tomorrow and in Cyprus on Tuesday. Although I reckon that now is a good time to invest in mattresses and safes.
So someone with €50 000 in the bank is getting €3 375 taken from them, and someone with €200 000 in the bank getting €20 000 taken from them?
Not ideal, but they do still have €46 625 and €180 000 respectively.
I'd much rather the people who have assets in a country taxed than the Euro collapse, or have taxpayers here fund another bailout.
...and what if you've recently sold your house for €200k and are just about to purchase another, the EU come along, steal €20k from you and you're stuffed!
...and what if you've recently sold your house for €200k and are just about to purchase another, the EU come along, steal €20k from you and you're stuffed!
Then you better take out a mortgage for the other €20k.
Surely, they couldn't deduct sums of money without consent from current accounts where direct debits are in place? Wouldn't such actions lead to many people being overdrawn and, therefore, subject to bank charges? This scenario is unthinkable, it would cause more problems than it would solve and leave innocent people in debt that they'd find hard to repay.
It would be interesting to know how many people in the upper echelons of power in Cyprus knew about this action beforehand during the negotiations stage and moved their funds elsewhere before the agreement. If I was a journalist in Cyprus, this would be the area I would be sniffing at right now.
If the EU decides this is the way forward they can impose it, and our MP's won't be able to do anything to stop it, not that they would want to. People who work and save are being ripped off anyway.
The BBC had got a story up this morning with hand-wringing from illiterate "ex-patriots" (something of a Freudian slip, one cannot help thinking). It's been replaced with another that's scarcely any better. In the case of expatriates, one is reminded of Mrs Merton's barb to Debbie McGee: "What was it that first attracted you to millionaire magician Paul Daniels?", in this case "what was it that first attracted you to investing in the low-tax regime of a small economy with a weak banking sector?"
You'd have thought the experience of Iceland would have told people that "government guarantees" from economies the size of the Manchester weren't worth the paper they're written on. Cyprus attracted huge amounts of offshore money (37% of money in Cypriot banks is held by non-residents) by charging very low tax and offering surprisingly large interest rates. Without a bailout, Cypriot banks will go bust, and without a bailout that covers government guarantees the depositors will lose a great deal more than 6%.
It's hard not to have sympathy, and a lot of it, for Cypriot residents who have their salaries paid into their local bank so they can buy stuff at the supermarket. That they get caught in the cross-fire is shocking, and the EU should do what it can to protect their interests. But for expats and offshore depositors taking advantage of low tax rates and high interest rates offered by banks that are obviously hooky in an economy that is obviously on its last legs? It's hard to feel the same.
How can you just take someones money
Its absolutely outrageous and Im not even Cypriot . :mad:
There was no money in Cyrpus. Owing 130 billion on a GDP of 30 billion means there its all very funny money.
It just happens that Cyprus is where many Russians hide their cash because the banks there accept it all without a word said.
Europe still gets ripped off pumping in the 90% of wasted money.
Its not about deposit guarantee it is stopping very dodgy money dealings, which would send us all under anyway.
The BBC had got a story up this morning with hand-wringing from illiterate "ex-patriots" (something of a Freudian slip, one cannot help thinking). It's been replaced with another that's scarcely any better. In the case of expatriates, one is reminded of Mrs Merton's barb to Debbie McGee: "What was it that first attracted you to millionaire magician Paul Daniels?", in this case "what was it that first attracted you to investing in the low-tax regime of a small economy with a weak banking sector?"
You'd have thought the experience of Iceland would have told people that "government guarantees" from economies the size of the Manchester weren't worth the paper they're written on. Cyprus attracted huge amounts of offshore money (37% of money in Cypriot banks is held by non-residents) by charging very low tax and offering surprisingly large interest rates. Without a bailout, Cypriot banks will go bust, and without a bailout that covers government guarantees the depositors will lose a great deal more than 6%.
It's hard not to have sympathy, and a lot of it, for Cypriot residents who have their salaries paid into their local bank so they can buy stuff at the supermarket. That they get caught in the cross-fire is shocking, and the EU should do what it can to protect their interests. But for expats and offshore depositors taking advantage of low tax rates and high interest rates offered by banks that are obviously hooky in an economy that is obviously on its last legs? It's hard to feel the same.
Those ex-pats who are over retirement age will also be receiving the winter fuel payment, even though they no longer live in the UK. Feeling sorry for them is something that I cannot do, but if that payment helps to get Cyprus back on its feet then the British government may have done something right because, let's face it, when you leave our shores for somewhere warmer, you don't need that winter fuel allowance. If there's such a thing as karma then this is one good example.
But for expats and offshore depositors taking advantage of low tax rates and high interest rates offered by banks that are obviously hooky in an economy that is obviously on its last legs? It's hard to feel the same.
I agree, especially after watching the segment on Sky News featuring British expats in Cyprus moaning about the situation. Invariably the expats are in a British "pub" and their faces are an unhealthy shiny red hue.
As with all 'Could it happen here ?' questions, the answer is always Yes. You just need to assess whether it is a high enough probability for it to be something to worry about.
Personal opinion is that this will backfire so badly in Cyprus that no government will consider it again...
Personal opinion is that this will backfire so badly in Cyprus that no government will consider it again...
Assume that the Cypriot government is unable to impose this tax (actually, I believe it's forced purchase of shares: the depositors will be given shared in the bank in exchange). What do you think will happen instead? Do you think that, for example, the collapse of a Cypriot bank causing people to be forced back onto the resources (or should that be "resources") of the Cypriot depositor protection scheme will be a better outcome?
The German government might be willing to underwrite a bailout for Cypriot, ie EU, citizens. But a large proportion of the money in Cypriot banks is Russian, and the German government is not going to compensate Russian depositors.
It's certainly got me thinking! My life savings may now be withdrawn from the bank and laid neatly under my mattress, it's got to be safer there than anywhere and it most certainly won't suffer much from loss of interest.
True! Also another benefit is instant, easy access. I've stopped paying into my savings account (the interest is sh/te anyway) and have started putting money in savings tins around the house (the ones that can only be opened with a tin-opener). Its a lovely surprise when I feel the need to dip into one - as a lot of the time I have more in than I thought I had! It beats wasting petrol money and parking fees going into town to get money out of the bank!
The trouble is people in countries like Cyprus and Greece have avoided paying their way for far to long, they then joined the Euro and their cheap holiday status virtually disappeared over night (not that Cyprus, was ever that cheap), so those countries just don't make any money, they have to fund it somehow. I wonder how many of the people now moaning about the raid on their accounts have kept all the re-bar sticking out of the roofs on their houses (thus avoiding, tax on that house).
Comments
It's an insane thing to do, because it's essentially telling people in Spain and Italy to get their cash out NOW.
I do wish people would remember that. It's still an attack on savers, but the main target are Russian tax dodgers.
Yep exactly. I'm not looking forward to what happens around the Med. tomorrow and in Cyprus on Tuesday. Although I reckon that now is a good time to invest in mattresses and safes.
Not ideal, but they do still have €46 625 and €180 000 respectively.
I'd much rather the people who have assets in a country taxed than the Euro collapse, or have taxpayers here fund another bailout.
...and what if you've recently sold your house for €200k and are just about to purchase another, the EU come along, steal €20k from you and you're stuffed!
Then you better take out a mortgage for the other €20k.
it might still happen
Italy next?
http://www.zerohedge.com/news/2013-03-17/german-commerzbank-suggests-wealth-tax-italy-next
Osbourne were already having our own problems, so where is this money going to come from
How can you just take someones money
Its absolutely outrageous and Im not even Cypriot . :mad:
If I were a resident over there, I would be rioting big style and setting fire to things
There's no money left.
Oh, wait, there is money when it's politically expedient:cool::cool:
and as I pointed out Putin and his oligarch buddies wont be pleased
they should pray for a mild winter
http://www.zerohedge.com/news/2013-03-17/europe-scrambling-last-minute-revision-cyprus-deposit-confiscation-plan
Surely, they couldn't deduct sums of money without consent from current accounts where direct debits are in place? Wouldn't such actions lead to many people being overdrawn and, therefore, subject to bank charges? This scenario is unthinkable, it would cause more problems than it would solve and leave innocent people in debt that they'd find hard to repay.
You'd have thought the experience of Iceland would have told people that "government guarantees" from economies the size of the Manchester weren't worth the paper they're written on. Cyprus attracted huge amounts of offshore money (37% of money in Cypriot banks is held by non-residents) by charging very low tax and offering surprisingly large interest rates. Without a bailout, Cypriot banks will go bust, and without a bailout that covers government guarantees the depositors will lose a great deal more than 6%.
It's hard not to have sympathy, and a lot of it, for Cypriot residents who have their salaries paid into their local bank so they can buy stuff at the supermarket. That they get caught in the cross-fire is shocking, and the EU should do what it can to protect their interests. But for expats and offshore depositors taking advantage of low tax rates and high interest rates offered by banks that are obviously hooky in an economy that is obviously on its last legs? It's hard to feel the same.
It just happens that Cyprus is where many Russians hide their cash because the banks there accept it all without a word said.
Europe still gets ripped off pumping in the 90% of wasted money.
Its not about deposit guarantee it is stopping very dodgy money dealings, which would send us all under anyway.
Those ex-pats who are over retirement age will also be receiving the winter fuel payment, even though they no longer live in the UK. Feeling sorry for them is something that I cannot do, but if that payment helps to get Cyprus back on its feet then the British government may have done something right because, let's face it, when you leave our shores for somewhere warmer, you don't need that winter fuel allowance. If there's such a thing as karma then this is one good example.
I agree, especially after watching the segment on Sky News featuring British expats in Cyprus moaning about the situation. Invariably the expats are in a British "pub" and their faces are an unhealthy shiny red hue.
Personal opinion is that this will backfire so badly in Cyprus that no government will consider it again...
Assume that the Cypriot government is unable to impose this tax (actually, I believe it's forced purchase of shares: the depositors will be given shared in the bank in exchange). What do you think will happen instead? Do you think that, for example, the collapse of a Cypriot bank causing people to be forced back onto the resources (or should that be "resources") of the Cypriot depositor protection scheme will be a better outcome?
The German government might be willing to underwrite a bailout for Cypriot, ie EU, citizens. But a large proportion of the money in Cypriot banks is Russian, and the German government is not going to compensate Russian depositors.
True! Also another benefit is instant, easy access. I've stopped paying into my savings account (the interest is sh/te anyway) and have started putting money in savings tins around the house (the ones that can only be opened with a tin-opener). Its a lovely surprise when I feel the need to dip into one - as a lot of the time I have more in than I thought I had! It beats wasting petrol money and parking fees going into town to get money out of the bank!
Just print more money like the government have been doing for the last year or two.