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The new political dilemma of the European Union: should the EU to bail the Cyprus out?

In the previous politics Merkel spoke for the bailout of all countries in Eurozone. She always warns about the so called „domino effect“. It means, if one country is not bailed out, the trust in the euro currency will diminish, followed by the economic crisis.

The politicians promised earlier that every country of the Eurozone will be bailed out if it has problems with its budget deficit. The departure from this rule would mean that no one will be sure that the European Union is really stable in its economy and structures. Such uncertainty would trigger the economic crisis because nobody would be willing to invest in the European market. The consequences are the devaluation of the euro and the possibility of the EU breakdown.
So much about the Merkel’s politics. The new problem now is the indebted Cyprus. Cyprus has really small economy which is only 0,2% of the total GDP of the European Union. The European Union needs only 10 billion Euros for its bailout.

The real problem of Cyprus is Russian oligarchs who have parked illegal money in bank accounts. Russian deposits are about 26 billion Dollars (about 20 billion Euros). Many of these rich Russians are already the citizens of Cyprus. It means they can live anywhere in the Union and transfer their money wherever they want. Cyprus makes the money laundry possible for the whole European Union.

Officially, Cyprus is sticking to all the agreements on combating money laundering. The necessary laws have been passed and institutions have been set up. But there are problems with their implementation.

If the rescue package is accepted the German taxpayers will rescue simultaneous the illegal money of the Russian oligarchs. The SPD (Social Democratic Party) insist on meeting special conditions for Cyprus before the rescue package is accepted.

My questions for you are:

Do you think that the Cyprus should be bailed out? (to avoid the “domino effect”)

Is the rescue of illegal money would be for you more important than the stability of the Eurozone?

Do you believe that Cyprus can really manage the problem of illegal money, even if it failed to implement many laws in the earlier years? (Similar to Greece: the problem of the law implementation)

What political strategy for Germany would you suggest in this case?

Наталья Снеткова

Первое предложение: после should не нужен предлог to.

Предложение, где (Social Democratic Party) - insists. 3лицо, ед. ч.

Второй вопрос: порядок слов. Is the rescue of illegal money would be more important for you than the stability of the Eurozone?

Третий вопрос: manage the problem (если имеется ввиду решить проблему, а не контролировать, то гораздо более частотный вариант solve the problem)

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