Cyprus savings crisis felt throughout Europe
PR dla Zagranicy
Veronika Joy
19.03.2013 15:10
To what extent has the situation of bankruptcy threatened Cyprus on the Polish market?
A old man sits in front of a closed Bank of Cyprus branch, in Nicosia, Cyprus, 19 March. Branches of Cypriot banks remain closed in Cyprus amid EU bailout talks that have sparked enormous public anger and have led to cash withdrawals. PAP/EPA/FILIP SINGER
The news of plans to tax bank money deposits in Cyprus has found negative reflection on many European bourses.
“Fortunately, the Warsaw Stock Exchange has not succumbed to the general trend,” said Marcin Mrowiec, chief analyst for Bank Pekao SA, adding that “the WSE has reacted in a much more modest manner than the stock exchanges in Spain or Portugal with the market down by 1 percent, which is one third of the decline registered elsewhere [Tuesday morning].”
Marek Siwiec, a Member of the European Parliament, argued the precedent set in Nicosia will have consequences for the entire European Union. He's afraid that the heavier price to pay for Cyprus will be the undermining confidence in relations between the people and the state.
Slawek Szefs reports.