Cyprus Mail www.cyprus-mail.com
Tuesday, February 26, 2013
€1
CYPRUS
BRITAIN
OSCARS
Kasoulides and Sarris confirmed as ministers
UK’s top Roman Catholic cleric resigns
Hollywood’s biggest night: who won what, who wore what and who said what
8
4
15-17
Path to bailout not all smooth sailing Germany and France call for quick resumption of bailout talks
I
T SEEMS Presidentelect Nicos Anastasiades will not be getting a grace period from his European partners, as less than 24 hours after winning the elections, France and Germany called for a swift resumption of bailout talks with a view to concluding negotiations before the end of March. It will not be all smooth sailing for Anastasiades however. European policymakers are split over how to handle a bailout of Cyprus, with Germany and some other countries pushing for bank depositors to bear part of the cost and many other member states worried such a move will cause a bank run. In a joint statement issued yesterday, the Finance Ministers of France and Germany, Pierre Moscovici and Wolfgang Schaeuble, welcomed the result of the election, “which will allow for the formation of a government that will quickly continue with the negotiations about a financial assistance programme for Cyprus. Discussions should resume shortly with a view to reach an agreement before the end of March.” The president-elect agreed with the statement. “Long term prospects for Cyprus are excellent as we are committed to carrying out necessary structural reforms. We only need a helping hand now,” Anastasiades told Germany’s best-selling daily Bild, according to advance excerpts of an interview to
be published in today’s edition. “There is a pressing need to recapitalise our banking sector,” said Anastasiades in the Bild interview. “I agree with Germany and France that we should reach an agreement by March.” Not long after the statement was published, Schaeuble’s spokesman said the German finance minister had not changed his view that Cyprus may not be systemically relevant for the eurozone as a whole. “There is no change of mind. The minister will not be pushed ... but one can strive for (negotiations) to go as quickly as possible,” Martin Kotthaus told a regular news conference. “The minister and his French colleague wanted to express hope with their statement that you will get real momentum into the discussion, that that process will be quick (and that) questions such as money laundering, tax issues, sustainability and systemic relevance and such will be addressed quickly,” Kotthaus added. Eight months of talks on a Cypriot bailout package have turned the island into a big headache for the eurozone, triggering concerns of a financial collapse that could reignite the bloc’s debt crisis. Schaeuble, however, has repeatedly questioned whether Cyprus, with gross domestic product of barely 0.2 per cent of the eurozone’s output, is large
TURN TO PAGE 3
Liberal Sweden is strait-laced on drinking
A group of youngsters from Aradippou in Larnaca yesterday painted over graffiti and brightened up exterior walls in schools, sports venues and other public buildings in their neighbourhood as part of a scheme organised by the municipality and the local police to sensitise the young to community service, to instil a work ethic and to make them more aware of what’s going on in their immediate environment
FEW CEOS would welcome news of a fall in sales. But Magdalena Gerger - head of Sweden’s retail alcohol monopoly that is one of the world’s biggest single buyers of wine - is one of them. Gerger’s job as head of Systembolaget exemplifies Sweden’s attitude that an interventionist state is good for you, and highlights Sweden’s conservative attitude to alcohol use despite its stronger reputation abroad for liberal social policies. “Nothing in my purpose or objectives drives that way (to increasing sales),” Gerger told Reuters at the headquarters in downtown Stockholm, squeezed between a bank and a church. “In fact it’s the other way around - a healthier public.” Contrary to popular belief about Sweden, which lies in the so-called vodka belt, the Nordic country has one of the smallest per capita alcohol consumptions in Europe. Over the last few years Sweden has privatised companies, trimmed its welfare state and cut taxes. But Systembolaget, along with the country’s famed, lengthy parental leave, appears a sacred cow oblivious to reform. If you want to buy wine, beer or spirits in Sweden outside a restaurant, you must contend with Systembolaget, stores that offer no promotions, are closed most of the weekend and have an uncanny ability to make you feel a guilty consumer. Polls show a majority of Swedes support the system. But it is a model that is increasingly under scrutiny as Swedes buy more on the Internet from Europe. In 2011, around a fifth of Systembolaget’s stores reported a loss, but there is little chance of them closing.