Cyprus Deposit-Tax Passage in Doubt

If the legislature rejects the levy, the nation risks losing its membership in the euro.

Cypriot lawmakers may shoot down an unprecedented levy on bank deposits, risking the island’s membership in the euro.

The “feeling I’m having is that the house is going to reject it because they feel and think it isn’t just and that it’s against the interest of Cyprus,” Cypriot President Nicos Anastasiades told Sweden’s TV4 channel in an interview today.

‘Serious Blunder’

“What we have seen in the last few days is a very serious blunder by European governments that essentially are blackmailing the government of Cyprus to confiscate the money that belongs rightfully to depositors,” former Cyprus central banker Athanasios Orphanides said today on “Bloomberg Surveillance” with Tom Keene. “It’s not clear how this can affect in a positive manner the European project going forward.”

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