Cyprus rescue deal dents confidence, says Juncker
(03-18 20:28)
Luxembourg Prime Minister Jean-Claude Juncker warned that a controversial EU bailout deal for Cyprus could lead to a “loss of confidence’’ during a visit to Vienna, Austria.
“I have grave concerns that this will lead to a loss of confidence, not just from the banks but also from the people,’’ the former head of the 17-nation eurozone finance ministers said.
Cyprus agreed a debt rescue package with the eurozone and International Monetary Fund early on Saturday.
But the deal calls for an unprecedented levy on bank deposits in return for the desperately needed 10-billion-euro bailout, prompting shock and anger in Cyprus.
Juncker, who was meeting with Chancellor Werner Faymann and President Heinz Fischer, said he did not want to criticize the deal, but joked that: “This is the first [deal] that was made without my help. In that sense, it is deficient.’’
Juncker stepped down in January after eight years as Eurogroup chair.
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