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IPFS News Link • European Union

Europe in Crisis as Cyprus Faces National Bankruptcy

•, Jordan Shilton and Chris Marsde
 Thirty-six parliamentarians voted against the deal, while 19 abstained and none voted in favour. The initial bailout plan would have charged investors with deposits in Cypriot bank accounts a tax of 9.9 percent for those with account balances of more than €100,000, and 6.75 per cent for those with balances between €25,000 and 100,000. This would have raised €5.8 billion to support the proposed €10-billion-euro EU bailout for Cyprus’ banks.
With thousands gathered outside parliament to protest, a last-minute adjustment to exempt those with less than €20,000 from the levy had no impact.
President Nikos Anastasiades called an emergency meeting of all political parties to work on a “Plan B.” But a proposed alternative it drew up yesterday was rejected by the troika—the European Commission, the European Central Bank and the International Monetary Fund.