Cyprus Failout Measures “A New Low” - McGrath

Independent TD Mattie McGrath has said that the crisis which has now erupted over the bailout situation in Cyprus is “a monster of the ECB/Troika’s own making.” It follows the Eurozone countries and international creditor’s imposition of a deeply unpopular levy of up to 9.9 per cent on all deposits in the island’s banks as a condition for a desperately needed €10 billion bailout.

Independent TD Mattie McGrath has said that the crisis which has now erupted over the bailout situation in Cyprus is “a monster of the ECB/Troika’s own making.” It follows the Eurozone countries and international creditor’s imposition of a deeply unpopular levy of up to 9.9 per cent on all deposits in the island’s banks as a condition for a desperately needed €10 billion bailout.

“The move which had all the hallmarks of a border-line illegal grab on small savers accounts was despicable for the underhanded manner in which it was carried out,” said Deputy McGrath.

Dismissing the Taoiseach’s claim that the bailout crisis in Cyprus will not impact Ireland and is ‘unique to Cyprus’ as not bearing up to any kind of scrutiny, Deputy McGrath said this was a staggering claim to make given the deep instability that the crisis has sparked in the Eurozone.

“The Taoiseach’s belief that there will be minimal impact to this country also reveals the confused thinking that seems to operate in the Department of Finance and the ECB. For it was concern about contagion that was a key reason behind Europe’s decision not to permit Ireland to impose losses on senior bank bondholders in Anglo Irish Bank as part of the Irish bailout.”

In contrast to the dismissal by the Taoiseach about the potential of the crisis to impact Ireland, Deputy McGrath noted that The European Central Bank has warned that failure to agree an aid programme for Cyprus could cause “considerable difficulties” for Ireland and Portugal as they prepare their return to financial markets.

“As a mark of solidarity we should recognise the courageous actions of the Cypriot people in rejecting this decision which would have crippled many small investors and savers,” continued Deputy McGrath.

“The history of the Cypriot people is one of steady defiance of anything that threatens their sovereignty, and their reaction to this brutal measure has displayed that defiance once again”.

“The Irish people have equal reserves of courage and these will no doubt be on display as they continue to try and survive an era characterised by austerity measures imposed on them by this Government,” Concluded Deputy McGrath.