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On second thought, calling it a template isn't a good idea
When other European members heard Dijsselbloem's comment, they were up in arms immediately. Luxembourg appears to be their next target.
So, if you have money in a Luxembourg bank, maybe you should take steps to prevent yourself being given a haircut, too.
When other European members heard Dijsselbloem's comment, they were up in arms immediately. Luxembourg appears to be their next target.
Dijsselbloem attracted ire by playing up the potential for future “bail-ins” of bank bondholders and depositors, and by criticizing the overbanked economic structures of other European countries. Luxembourg, which transformed itself into a financial center after the demise of the coal and steel industry in the 1970s, felt unfairly targeted.
In a statement today, the Luxembourg government said it is “concerned about recent statements and declarations” on financial systems and the “alleged risks” of over-dependence on banks. It pointed to the “very high solvency ratios” of the mostly international banks, insurers and asset managers operating on Luxembourg soil.
Luxembourg relied on financial services for 23.5 percent of its gross domestic product in 2011, the highest in Europe, according to the European Union’s statistics office. Finance generated 8.9 percent of Cyprus’s output, with the EU average at 5.7 percent.
In a statement today, the Luxembourg government said it is “concerned about recent statements and declarations” on financial systems and the “alleged risks” of over-dependence on banks. It pointed to the “very high solvency ratios” of the mostly international banks, insurers and asset managers operating on Luxembourg soil.
Luxembourg relied on financial services for 23.5 percent of its gross domestic product in 2011, the highest in Europe, according to the European Union’s statistics office. Finance generated 8.9 percent of Cyprus’s output, with the EU average at 5.7 percent.
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