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Schaeuble: Germany didn’t push for taxing Cyprus’s small savers

FXstreet.com (Barcelona) - German finance minister Wolfgang insisted today that Germany is not responsible for the shape of the European deal on the bailout for Cyprus, under which even small savers’ deposits would be taxed. He assured that Berlin is open to potential changes in the proposition.

"The levy on deposits below 100,000 euros was not the creation of the German government," Schaeuble said. "If one reached another solution we would not have the slightest problem."
Wolfgang Schaeuble also added that it was impossible to resolve Cyprus’s financial problems without shrinking its banking sector.

The Cypriot parliament was supposed to hold a vote on the bailout today, but finally it is expected do it on Tuesday, as the government is still working on some changes to the proposition, which would reduce the impact of the tax on poorest savers by shifting more of the burden to deposits exceeding 100,000 euros.
The Eurogroup will hold a conference call following the vote.

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