Schulz on Cyprus: lessons must be learned
European Parliament President Martin Schulz made the following statement on the situation in Cyprus:
"I welcome the deal for Cyprus, although the details must be fully examined. It has brought us back from the edge. This agreement should allow for Cyprus' public finances and economy to enter a sustainable path. It is especially encouraging that small savers will be protected. I welcome the fact that the deal takes on board the European Parliament's clear call that deposits of less than €100 000 should be excluded from any levy. Cyprus has avoided a catastrophe and financial meltdown and the euro zone has avoided further turmoil.
Yet the case of Cyprus offers lessons: First, we need a banking union for the euro zone in place as soon as possible. Second, the Cypriot case show that is high time to tackle tax coordination. Third, the way the Cyprus case was handled is no way to do business in the EU. Negotiations lacked transparency, democratic accountability and were badly communicated."