Douglas Carswell's Blog

Cyprus should quit the Euro

Any Cyprus "rescue" is going to push her further into debt.  Whether ordinary Cypriots lose 1 percent of their savings - or 40 percent - they will be contributing to a deal that will mire them in debt for a generation.  And all to save bankers from the consequences of their own investment folly.

Cyprus should look not to Brussels, Berlin or Moscow for an answer, but to Reykjavík.  She should take the Iceland option;  Default, Decouple, Devalue.

I've an article in today's City AM explaining how this might happen.

If the only way that Cyprus can be "saved" is to impose capital controls to prevent people moving their money off the island, then ask yourself this;  does that not already mean that the value of a euro in Cyprus is below that of a euro in the rest of the Eurozone?  

Capital controls in a monetary union?  I suspect that the former dooms the later.     

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