{"id":5242,"date":"2013-03-20T06:24:35","date_gmt":"2013-03-20T04:24:35","guid":{"rendered":"http:\/\/www.poleconomix.gr\/portal\/?p=5242"},"modified":"2013-03-20T06:24:40","modified_gmt":"2013-03-20T04:24:40","slug":"cyprus-deal-the-right-intentions-but-major-flaws","status":"publish","type":"post","link":"https:\/\/www.poleconomix.gr\/portal\/cyprus-deal-the-right-intentions-but-major-flaws\/","title":{"rendered":"Cyprus deal: the right intentions but major flaws"},"content":{"rendered":"<p>Darvas, Zsolt.<\/p>\n<p>On Saturday morning, after a marathon meeting of the Eurogoup, it was decided to impose a one-time wealth tax on deposits in Cypriot banks: 6.75% on deposits below \u20ac100,000 and 9.9% on deposits above this threshold. Involving depositors was a wise decision and a wealth tax is a mild form of bailing-in, as I argued in a post last week.<\/p>\n<p>The intentions are right, because, as a first principle, taxpayers should not foot the bill for private-sector losses. In Cyprus, there is a special aspect related to suspected money-laundering, but in any case, tax rates were so low in Cyprus that the return over a longer period, even considering the one-time wealth tax on deposits, will likely exceed the return in other countries. Also, without a bailing-in of depositors, a publicly funded bank rescue in Cyprus would have seriously endangered fiscal sustainability. Without a bank rescue, Cypriot banks would have collapsed, leading to much worse outcome for all involved.<\/p>\n<p><strong>\u03a0\u03b7\u03b3\u03ae: \u00a0<\/strong>Bruegel<\/p>\n<p><a href=\"http:\/\/www.bruegel.org\/nc\/blog\/detail\/article\/1045-cyprus-deal-the-right-intentions-but-major-flaws\/#.UUk5eTdYlrA\" target=\"_blank\">\u03c0\u03bb\u03ae\u03c1\u03b5\u03c2 \u03ba\u03b5\u03af\u03bc\u03b5\u03bd\u03bf<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Darvas, Zsolt. On Saturday morning, after a marathon meeting of the Eurogoup, it was decided to impose a one-time wealth tax on deposits in Cypriot banks: 6.75% on deposits below \u20ac100,000 and 9.9% on deposits above this threshold. Involving depositors was a wise decision and a wealth tax is a mild form of bailing-in, as [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,37,4],"tags":[26,27],"class_list":["post-5242","post","type-post","status-publish","format-standard","hentry","category-18","category-37","category-proposals","tag-26","tag-27"],"_links":{"self":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts\/5242","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/comments?post=5242"}],"version-history":[{"count":2,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts\/5242\/revisions"}],"predecessor-version":[{"id":5244,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts\/5242\/revisions\/5244"}],"wp:attachment":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/media?parent=5242"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/categories?post=5242"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/tags?post=5242"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}