Cyprus-Troika Talks "Delicate" But Schaeuble "Won't Be Blackmailed"

Submitted by Tyler Durden on 03/23/2013 20:37 -0400

• European Central Bank
 
• Germany
 
• Google
 
• Newspaper

Some late news indicates that the 'deal' is further away than many hoped (or rumored) earlier in the day. Welt am Sonntag reports that German FinMin Schaeuble exclaimed "I won't allow myself to be blackmailed," adding his responsibility to the stability of the Euro. Simply put, he adds Cyprus must respect the rules, insistent that, "Cyprus is a hard road to go either way; but that is not the result of European stubbornness, but a business model that no longer works." With that as background, Cyprus President Anastasiades will be meeting with the IMF's Christine Lagarde tomorrow morning with talks at a "delicate point," with his spokesperson admitting the situation is "very difficult." The disinformation-to-total-confusion train pushes on forward; beggars can be choosers and 'demanders' won't be blackmailed.

• *STYLIANIDES SAYS ANASTASIADES DEPARTS FOR BRUSSELS 7:15 AM
• *STYLIANIDES SAYS ANASTASIADES WILL MEET WITH IMF'S LAGARDE
• *CYPRUS EUROGROUP MEETING TO BEGIN AT 7 P.M., SPOKESMAN SAYS
• *SCHAEUBLE SAYS WRONG DECISION NOW WOULD DO EURO A DISSERVICE
• *SCHAEUBLE SAYS CYPRUS MUST RESPECT THE RULES: WELT AM SONNTAG

Via Welt am Sonntag (Google Translate),

The euro zone crisis has seen in her many dramatic hours. But never before, the situation was so critical as this weekend, never had the political fronts so hardened - and never was the risk of a euro exit as high as in the case of Cyprus.

Finance Minister Wolfgang Schaeuble said the "Welt am Sonntag", "We want to avoid possible that Cyprus slips into insolvency." The framework for a utility change but nothing, and the European Central Bank could guarantee their relief to Cypriot banks only until Monday. Schaeuble made clear that Cyprus itself - and not Germany or the EU - to blame for its precarious situation.

"Cyprus is a hard road to go -. Either way but that is not the result of European stubbornness, but a business model that no longer works," said the CDU politician.

...

Before the crucial meeting of euro finance ministers, which is scheduled for Sunday evening, Schäuble was adamant: he was known that he was "[I won;t allow myself to be blackmailed]" He was aware of his responsibility for the stability of the euro.

...

Economists see the wrangling over a compulsory charge concerned. "The danger of a European bank runs is latent because the banking world of Southern Europe is tarnished," said Hans-Werner Sinn, president of the Munich-based Ifo Institute, this newspaper. "Some countries and many banks are actually already broke and held only by the special loans to the ECB on life. The disaster has occurred long ago, but the public closes their eyes."

Average: