Cyprus: it's hard to imagine a neater way of undermining confidence in the banking sector.

A PR disaster.

I hold my hands up.  I could not have been more wrong if I had tried.

I did not believe that the banking powers-that-be (the European Union, European Central Bank and International Monetary Fund) would be so dumb as to sanction a levy on consumers savings to bail out banks.

It has been a PR disaster. It is hard to imagine a neater way of undermining confidence in the banking sector.

That the leading banks in Cyprus are in a mess is not in dispute. The sector is reckoned to need a bailout of €17 bn; that is probably a conservative estimate. But the proposal to raise €5.8 bn from depositors of Cypriot banks sets a dangerous precedent, in particular the notion that the levy apply to all savers.

There is, or rather there was, an EU-wide guarantee that small savers’ deposit balances up to €100,000 were protected. That assurance has been given to savers in Cyrus as elsewhere in the EU. That promise is now seen to be complete and utter bunkum. It gets worse. The EU and the European Central Bank are not merely allowing the authorities in Cyprus to rip up the €100,000 guarantee; the EU and ECB are the very bodies pressing Cyprus to levy a charge on all depositors.

The latest in this Cypriot pantomime is that the country’s president Nicos Anastasiades is considering a levy on deposits below €100,000 of 3 per cent. That, I suppose, is an improvement on a levy of 6.7 percent proposed over the weekend. The revised act of larceny would witness account holders with balances of between €100,000 and €500,000 forfeiting 10 percent, while deposit balances above €500,000 would be cut by 15 per cent.

It is no wonder that share prices have tumbled at the Eurozone’s largest banks. It can be argued that Cyprus is a special case as regards the size of its banking sector relative to the country’s GDP. It is not however far-fetched to imagine consumers in countries such as Spain, Greece and especially Italy fearing that their savings may be under threat in the future.

Just to add to the gloom, Jeroen Dijsselbloem, the Dutch president of the group of euro area ministers, on Saturday refused to rule out taxes on depositors in countries beyond Cyprus. There remains time for the Cyprus government and the EU authorities to re-work their sums in an attempt to rebuild trust among small depositors. They could, for example, apply a tax-free threshold of €100,000 while raising the threshold on savings above €100,000; it is the least the government ought to do.

A PR disaster for the IMF, ECB, and EU. Photograph: Getty Images

Douglas Blakey is the editor of Retail Banker International

kerim44 at Wikimedia Commons
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Xenophobic graffiti at a London Polish centre is a dark sign of post-Brexit Britain

The centre's chairwoman says an incident of this kind has never happened before, and police are treating it as a hate crime. 

Early on Sunday morning, staff arriving at the Polish Social and Cultural (POSK) centre in west London's leafy Ravenscourt Park were met with a nasty shock: a xenophobic obscenity smeared across the front of the building in bright yellow paint. 

“It was a standard, unpleasant way of saying ‘go away’ – I'll leave that to your interpretation,” Joanna Mludzinska, chairwoman of the centre, says the next morning as news crews buzz around the centre’s foyer. The message was cleaned off as soon as the staff took photo evidence – “we didn’t want people to walk down and be confronted by it” – but the sting of an unprecedented attack on the centre hasn’t abated.

“Nothing like this has ever happened before,” Mludzinska tells me, shaking her head. “Never.”

The news comes as part of a wash of social media posts and police reports of xenophobic and racist attacks since Friday’s referendum result. It’s of course difficult to pin down the motivation for specific acts, but many of these reports feature Brits telling others to “leave” or “get out” – which strongly implies that they are linked to the public's decision on Friday to leave the European Union. 

Hammersmith and Fulham, the voting area where the centre is based, voted by a 40-point margin to remain in the UK, which meant the attack was particularly unexpected. “The police are treating this as a one-off, which we hope it is,” Mludzinska tells me. They are currently investigating the incident as a hate crime. 

“But we have anecdotal evidence of more personal things happening outside London. They’ve received messages calling them vermin, scum [in Huntingdon, Cambridgeshire]. It’s very frightening.” As one local Polish woman told the Mirror, there are fears that the referendum has “let an evil genie out of a bottle”. 

For those unsure whether they will even be able to stay in Britain post-referendum, the attacks are particularly distressing, as they imply that the decision to leave was, in part, motivated by hatred of non-British citizens. 

Ironically, it is looking more and more likely that we might preserve free movement within the EU even if we leave it; Brexit campaigners including Boris Johnson are now claiming immigration and anti-European feeling were not a central part of the campaign. For those perpetrating the attacks, though, it's obvious that they were: “Clearly, these kind of people think all the foreigners should go tomorrow, end of,” Mludzinska says.

She believes politicians must make clear quickly that Europeans and other groups are welcome in the UK: “We need reassurance to the EU communities that they’re not going to be thrown out and they are welcome. That’s certainly my message to the Polish community – don’t feel that all English people are against you, it’s not the case.” 

When I note that the attack must have been very depressing, Mludzinska corrects me, gesturing at the vases of flowers dotted around the foyer: “It’s depressing, but also heartening. We’ve received lots and lots of messages and flowers from English people who are not afraid to say I’m sorry, I apologise that people are saying things like that. It’s a very British, very wonderful thing.”

Beyond Hammersmith

Labour MP Jess Phillips has submitted a parliamentary question on how many racist and xenophobic attacks took place this weekend, compared to the weekends preceding the result. Until this is answered, though, we only have anecdotal evidence of the rise of hate crime over the past few days. From social media and police reports, it seems clear that the abuse has been directed at Europeans and other minorities alike. 

Twitter users are sending out reports of incidents like those listed below under the hashtag #PostBrexitRacism:

Facebook users have also collated reports in an album titled Worrying Signs:

Police are currently investigating mutiple hate crime reports. If you see or experience anything like this yourself, you should report it to police (including the British Transport Police, who have a direct text number to report abuse, 61016) or the charity Stop Hate UK.

HOPE not hate, an advocacy group that campaigns against racism in elections, has released a statement on the upsurge of hatred” post-referendum, calling on the government to give reassurance to these communities and on police to bring the full force of the law” to bear against perpetrators.

The group notes that the referendum, cannot be a green light for racism and xenophobic attacks. Such an outpouring of hate is both despicable and wrong.

Barbara Speed is a technology and digital culture writer at the New Statesman and a staff writer at CityMetric.