Cyprus Parliament Rejects Deal: May Turn to Russia Instead

The Cypriot Parliament has rejected the bailout deal on offer even after account holders with accounts under the 20,000€ threshold were exempted from the proposed tax of 6.75 %. The tax proposed for account holders above 100,000€ was 9.9 %. Not a single member of Parliament voted for the measure. 36 opposition members voted against the proposal, 19 pro government members abstained. This will mean that Cyprus either will do a deal with Russia or perhaps China involving some sort of quid pro quo on the future development of Cypriot natural gas resources or the European union will have to come up with a much more generous plan that shields smaller depositors. Markets understandably are nervous since bank failure in Cyprus and a decision to leave the euro would have major repercussions throughout the eurozone and ultimately the global economy,

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About haroldchorneyeconomist

I am Professor of political economy at Concordia university in Montréal, Québec, Canada. I received my B.A.Hons (econ.&poli sci) from the University of Manitoba. I also completed my M.A. degree in economics there. Went on to spend two years at the London School of Economics as a Ph.D. student in economics and then completed my Ph.D. in political economy at the University of Toronto. Was named a John W.Dafoe fellow, a CMHC fellow and a Canada Council fellow. I also was named a Woodrow Wilson fellow in 1968 after completing my first class honours undergraduate degree. Worked as an economist in the area of education, labour economics and as the senior economist with the Manitoba Housing and Renewal Corporation for the Government of Manitoba from 1972 to 1978. I also have worked as an economic consultant for MDT socio-economic consultants and have been consulted on urban planning, health policy, linguistic duality and public sector finance questions by the governments of Manitoba, Saskatchewan,the cities of Regina and Saskatoon, Ontario and the Federal government of Canada. I have also been consulted by senior leaders of the British Labour party, MPs from the Progressive Conservative party, the Liberal party and the New Democrats on economic policy questions. Members of the Government of France under the Presidency of Francois Mitterand discussed my work on public sector deficits. I have also run for elected office at the municipal level. I first began to write about quantitative easing as a useful policy option during the early 1980s.
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