Minister Luc Frieden spoke in Parliament about Cyprus
March, 20. Minister of Finance Luc Frieden gave his explanations to the Chamber of Deputies on the situation around Cyprus.
According to him, the banking crisis in this country may have unpredictable consequences for the whole eurozone. That’s why the help from the European stability mechanism is necessary, he said. The minister underlined that it is not only “a solidarity act in relation to Cyprus”, but also a measure to “maintain the stability in the eurozone”.
Luc Frieden commented some press article claiming the similarity of the economic models of Luxembourg and Cyprus, as the GDP principal revenues come from the financial sector. Such assumptions are ungrounded, said the minister. The financial sector of Luxembourg is more diversified and is subject to international regulatory norms.