How Russian and Romanian press presented the Cypriot No
Panteio University of Political and SocialSciencesDepartment of Communication, Media and CultureAdvertising and Public Relations LabCrisis Management WorkshopInstructor: Mania Xenou, CEO ReliantCommunicationsHead of Advertising & PR Lab, Assistant ProfessorBetty Tsakarestou (@tsakarestou)
The Cypriot «No» to the EU taxbill as seen in russian &romanian media
Government and Parliament of Cyprus looking forwhere to get the money to avoid bankruptcyCyprus parliament rejectedEurope’s stringent conditionsto gather from all depositors inbanks almost 6 milliard euros asthe only way to earn theEuropean credit for 10 billioneuros.In this case, GermanChancellor Angela Merkeltoughly warned Cyprus fromtrying to get help fromsomeone else, includingRussia. As we can see, itproduced the oppositereaction.Cypriot authorities searchedtoday a political solution to thecrisis in the capital of Russia.
This morning, after yesterdays call of Cyprus President to Vladimir Putin,came to Moscow Michalis Sarris ,headed straight to the Ministry ofFinances, but in such a hurry, these kind of negotiations on such huge sumsis unlikely to give any results.Coming out of the doorsof the Ministry ofFinance Michalis Sarrislookedperplexed, whetherfrom the fact that hiscar was gonesomewhere, whetherfrom the conversationwith the Minister AntonSiluanov.Irony, Arrogance
There is a Poker game, and the twosides are fighting, the Eurogroup, and thecrucial role is Germany’s, and thegovernment of Cyprus, well I think thatsomehow Russia got dragged in thisgame. Of course, in this situation the EUis not behaving correctly , when itbrusquely «advises» Cyrus not toconduct discussions or negotiations withRussia,and tells to focus on the EU, I thinkthis is, as they say, too much.Allegory on an european game, diassaproval on EU methods, claimthat Russia was not a part of it, accuses EU of unfair, unproperbehavior regarding Cyprus issue.
The citizens met with glee the Parliamentsdecision, because the Cypriot society’s attitudetoward the European position is in fact a consensus :it is robbery.
Today in Moscow the wholeday, they are trying to solve themost acute global economicproblems of the last days - thefinancial crisis in Cyprus. Infact, the "bad luck island " isalso desperately looking for a wayout of the impasse.Last night the Cypriot Parliament didnot accept the scandalousdecision on the actual seizure ofbank deposits, and manyinvestors, includingRussian, breathed a sigh of relief.But the problem has not beensolved.Headline: Cyprus, the bad luck island
Cypriot parliament rejected the tax ondeposits. Moreover, none of the members didnot support the authorities and theEurogroup’s project, which offers to theplunged in the the financial problems islandan escape through the forces of bankdepositors.Cyprus refused to save the economy withthe forces of bank depositors.From the deposits of Cypriot residentswas required a simultaneously cut of afew percent for the state,in exchange for10 billion euros of financial assistancefrom EU. The same goes for large foreigninvestors. Russian companies and privateindividuals for example, could lose onthis hundreds of millions of euros. Thathas caused, to put it mildly, Moscow’sperplexity.
Great expectations Nicosia links with Russia, wherecame to negotiate the Cypriot Minister ofFinance, Michalis Sarris. Today he met with FirstDeputy Prime Minister Igor Shuvalov and head of theRussian Ministry of Finance Anton Siluanov.This visit was about a lot of greatexpectationsMichalis Sarris evencanceled a pressconference, asprobably, he simplyhad nothing to say.For Cyprus, thismeeting is almost offateful importance.Meanwhile, there is an uprising pressure on Cyprus from our Europeanneighbors. German Chancellor Angela Merkel in a telephoneconversation with the President of the island nation NikosAnastasiadis, said the country should negotiate about the rescue onlywith the triple creditors: the EU, the IMF and the European Central Bank.
"The scheme is absolutely absurd"• Cypriot parliament banned the tax bill to write offmoney from bank deposits. There were no votes"for". The rejection of the proposal to write offdeposits threats with default, but officialspromise a "plan B", without specifying itscontent. Finance Minister Michalis Sarris canreturn from Moscow without portfolio. The postis proposed to Head of Finance Committee ofParliament, Nicholas Papadopoulos. It is aguarantee that the tax bill will not pass on, and asign of reconciliation with Moscow, who criticizedthe decision to write off deposits.
• Russian Prime Minister Dmitry Medvedev andEuropean Commission President Jose ManuelBarroso exchanged reproaches on the "Cyprusissue". Position of Europe - the tough decisionsare unavoidable because bloated financial sectorin the economy. Russia believes that theEuropean Commissions proposals are absurd andundermines the global financial system. Thefailure of the Moscow consultations may lead to adefault of Cyprus. Local parliament is preparinganti-crisis laws - to limit the movement of capitaland the bank bankruptcy.
• Premier believes that further steps to resolvethe Cyprus problem must take all interestedparties, including Russia• Also Prime Minister said that Europe’ssuggested scheme to resolve the situation inCyprus is "absolutely absurd» , taking intoaccount the international communitys effortsto build mutual confidence in the financialsector.
• According to the prime minister, while attempting to resolve thedebt problem on the island, there were made all the possiblemistakes.• On Wednesday, March 20, Russian Prime Minister DmitryMedvedev described the joint action by the EU, the EuropeanCommission and the Government of Cyprus to resolve debtproblems that the island encountered.• - «The actions of the European Union, the EuropeanCommission, together with the Government Cypriot to resolve thedebt problem, unfortunately, remind of those of the elephant in achina shop». Whether they got bored and miss the crisis, or theyjust forgot what happened a few years ago - said the prime minister.• In this case, Medvedev said, he does not exclude the fact that thiskind of problems may destroy the entire banking system in Cyprus.In this case, according to Medvedev, "Cyprus and the persons whoare responsible for the beginning of this very difficult period " mustexpect for a large number of lawsuits from private and governmentinstitutions.
The Cypriot Parliament rejected Tuesdaynight, the controversial taxation of deposits.• The measure sparked popular anger andnervous movements of financial markets.About a third of deposits belong to Russiancitizens in Cyprus, so Cypriot Minister ofFinance Michalis Sarris, traveled to Moscowon Tuesday to calm spirits. Sarris denied thathe would resign.
Crisis in Cyprus: What could gainRomania and how see the Romaniansthere the taxing of bank deposits• Taxation deposits in Cyprus has caused a real hysteria among thepopulation, and the financial markets. Consequently, the Parliament inNicosia rejected the measure, sending the Mediterranean country into ahigher level of the crisis.• Under these circumstances, we can attract these depositors in ourcountry, which has a more stable banking system than Cyprus. Inaddition, the yields paid by banks operating in Romania are better.• Instead, Cristian Parvan, general secretary of the Association ofBusinessmen (AOAR), believes that money will not migrate from Cyprus toRomania, but to other fiscal paradises.• "Cyprus is a serious and negative signal for all depositors of all EUcountries that are in a bad financial situation (Italy, Spain, Greece). I don’tthink that Romania will become a target for depositing money. There areother destinations like Luxembourg, San Marino, Lichteistein, Monaco, Netherlands, Switzerland, which provide greatersafety and favorable legislation, " he said, for Ziare.com.
Russia refused to help their partners in Cyprus, so now thebrunt rests on the shoulders of parliamentarians, who mustdecide on a new plan proposed by the government.
«Even if it will be found a solution to save Cyprus overnight, however thiscountry will lose a lot, because investors will not just stand there and they willwithdraw their money as soon as they will be available or when Cypriot bankswill give it to them. From our perspective, what is happening in Cyprus anddoes not help us at all and probably until things settle down there we will seepressure on the exchange rate, »said Cristian Hostiuc, editorial director of ZiarulFinanciar.
• «Want it or not, you mustsave the country.» HugeTax for deposits of over100,000 from Bank ofCyprus• After a week ofnegotiations and plans, itseems increasingly clearthat who has over $100,000 in an accountwill help Cyprus, willy-nilly, to save the countryfrom bankruptcy.