Wednesday, 20 March 2013

Wolfgang Schäuble on the Cyprus bailout mess

Wolfgang Schäuble, German finance minister, last night said that “nobody other than Cyprus is to blame for this” (the Cyprus bailout mess)

“Cyprus is living with a banking sector with low taxes and favourable laws that is completely overdrawn and that makes Cyprus bankrupt. This business model is not sustainable.”

Schäuble is, of course, right. But what he "forgot" to mention, is that without the euro, neither he, nor any of his other eurogroup colleagues would have the slightest reason to worry about massive bailout packages and possible repercussions on the eurozone financial markets. 

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