According to Nigel Farage, leader of the UK Independence Party, northern EU leaders realize they risk vast losses if they allow Cyprus, Greece or any other southern member to fail. To prevent this, they have resorted to extreme measures - even theft.
RT:Every bailout comes with strings attached. But can
Cyprus afford the price the EU has set?
Nigel Farage: What is really happening here is we are having
a reconcilable split between the North and the South of Europe. In
the North of Europe – Germany, the Netherlands, and Finland – there
are very strong political voices saying “We do not want to go on
bailing out southern European countries.” And bear in mind that
Cyprus is now the fifth country out of 17 that has needed to be
bailed out. And that is why the Germans extracted the terms that
they did. But I must say that even in my direst predictions in this
parliament over the years about the way the EU bosses were
behaving, never did I think that they would in a completely
unprecedented manner resort to stealing money from people’s bank
accounts.
RT:But is that because Europe can’t afford Cyprus to
fail?
NF: Well, It can’t afford Cyprus to fail, it can’t afford
Greece, Portugal, Spain or Ireland to fail. They know that once one
country goes the whole deck of cards will come tumbling down. And
countries like Germany will realize absolutely vast losses –
possibly as much as one trillion euro.
So, they are prepared now to do literally anything to try to keep
the Euro afloat. And that is why they have now resorted to what can
only be described as theft.
Now they’ve done it in one country, they are quite capable of doing
it in Italy, Spain, Portugal, or anywhere else.
And the message that sends to people who have got savings in banks
in those countries – certainly if I was them is “get your money
out while you can.”
RT:In 2010, almost twice as much British money went to
Cyprus as transfers from Russia - according to the country's
official website. Haven't you got a responsibility to safeguard
your constituents’ interests there?
NF: The government has had nothing to say on that subject
whatsoever. And what the government ought to do is to help the
British people living down there – mostly pensioners.
But what the British government needs to do is to say to the
hundreds of thousands Brits that are living Southern Spain, that
“For goodness sake, get your money out of that country and have a
monthly transfer to pay your bills. And that is what I’d like to
see [Britain's Chancellor of the Exchequer] George Osborne do in
budget statement in the House of Commons tomorrow.
RT:And what sort of message is this sending to foreign
investors? Essentially, are not they being taxed to cure a crisis
they had no part in causing?
NF: Don’t invest in the Eurozone! Do not invest anywhere in
Eurozone. You’ve got to be mad to do so, because it’s now run by
people who don’t respect democracy, who don’t respect the rule of
law, who don’t respect the basic principles upon which western
civilization is supposed to be based.
I think that this German-dominated and led decision is the worst
decision we’ve seen so far in this whole Eurozone crisis.
RT: Various EU leaders have said recently that they
are not happy with the way tax havens work. Is something being done
about that now?
NF: The EU has been unhappy about so-called tax havens for a
very long time. Ironically, whilst continuing to turn a blind-eye
to many activities that go on in Luxemburg. I mean Cyprus finds
itself right now in a very difficult, desperate position. But I
would say that it is better to officially go bankrupt, to default
on international bond obligations. And to do that best to keep a
banking industry and to keep some confidence in that
country.
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of RT.