by system failure
The road was well prepared long ago. More and more
information was coming to the surface such as that the Cyprus economy
is in bad condition and there is a need for a memorandum for Cyprus,
similar to that of the eurozone periphery countries.
The European Central Bank and the European institutions
did not choose the same way this time. They strike Cyprus at the
point which hurts most, in order to enforce the desirable and
favorable policies for the expansion of neoliberal experiment which
is repeated renewed in eurozone countries. The tax-haven Cyprus will
be soon converted into another state controlled through debt by the
European neoliberal economic empire, as the first necessary moves
have already been done by the ECB and Mario Draghi. This is why the
ECB announced that - despite the desicion of Cyprian parliament which
decided (for the moment) to withdraw the “plan” for the haircut
of deposits – will continue to supply Cyprus with liquidity.
(http://failedevolution.blogspot.gr/2012/09/lea-jacta-est-by-emperor-draghi.html).
What are the main reasons behind the recent scandalus
decision of Eurogroup for the haircut of deposits in Cypriot banks?
First,
the elimination of the Cypriot banking-tax haven, which in the euro
zone, is the only one located out of the German sphere of influence
(and therefore mostly of German big capital). Therefore, the
banking-tax havens (Switzerland, Luxembourg, Liechtenstein) in euro
area , are restricted to the limits of influence of the hard core.
Second, the decision will probably trigger a mass flow
of Russian capital out of the Cypriot banks, therefore, the decision
also aims to unblock Cyprus from the Russian capitals and will force
the country to turn easier and faster to the exclusive source of
funding, the ECB, which will enforce the desirable policies applied
to the other eurozone countries which adopted the troika memorandum.
Therefore, the statement of the Cypriot president Nikos Anastasiadis
that "the solution is the less painful because above all, leaves
the management of economy in our hands", could be characterized,
at least as misleading.
Third, the decision aims to hit the Cypriot-Russian
relations, as it will hurt Russian interests concerning the
exploitation of energy resources in the region. Moscow reacted
strongly against the possibility of haircutting Russian deposits in
Cypriot banks. At the same time, EU partners will press Cyprus to
“open the door” of its energy resources exclusively to the
western big companies. A recent statement of the Greek prime minister
Antonis Samaras - who is also a prisoner of debt to European
creditors and US-influenced IMF – speaking about a unified European
Exclusive Economic Zone, is pointing the way towards the unification
of Greek and Cypriot EEZs and widening the field of potential
reserves in the south-east Mediterranean for exploitation from the
same companies.
But , above all, the one thing which resounding
collapses, is the supposed guarantee of deposits within the euro
zone, which is supposed to be secured permanently, based on the
decisions of the European Summit in October 2012. At least this was
supported by Antonis Samaras at a press conference, claiming that the
proposal of Mario Monti, concerning guarantee of deposits, has been
entered for the first time in section 9 of the final outcome
text:(http://failedevolution.blogspot.gr/2012/10/ambiguities-contradictions-stilted.html).
Only five months later, the facts are proving that there is no
guarantee of deposits, that the decisions of the political
institutions of EU cannot be taken for granted, and that decisions
are, actually, entirely in the hands of the ECB and financial control
mechanisms.
What actually the European neoliberal economic empire
does, is to deregulate the system continuously for the benefit of
banks and big capital. It is not only the dissolution of labor rights
and the welfare state. The haircut of deposits, will allow major
shareholders of Cypriot banks to reduce the legally required capital
in cash, through the fractional reserve rule, while a large part of
the bailout package will be returned to the banks for the sake of
"stabilization" of the banking system. But the money will
just take a trip to Cyprus and then return as major shareholders'
funds back to the ECB, after robbing the depositors.
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