Germany Restates Deposit Guarantee as Cyprus Concern Spreads
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German Chancellor Angela Merkel’s government was pressed to reiterate a 4 1/2-year-old pledge guaranteeing bank deposits as concern rippled across Europe at a decision to fund Cyprus’s bailout by taxing the island’s savers.
“It’s the nature of a guarantee that it remains valid,” Steffen Seibert, Merkel’s chief spokesman, told reporters in Berlin today when asked whether the pledge Merkel made in 2008 with her then-finance minister, Peer Steinbrueck, still held.