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

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Commons Confidential: Dave's picnic with Dacre

Revenge is a dish best served cold from a wicker hamper.

Sulking David Cameron can’t forgive the Daily Mail editor, Paul Dacre, for his role in his downfall. The unrelenting hostility of the self-appointed voice of Middle England to the Remain cause felt pivotal to the defeat. So, what a glorious coincidence it was that they found themselves picnicking a couple of motors apart before England beat Scotland at Twickenham. My snout recalled Cameron studiously peering in the opposite direction. On Dacre’s face was the smile of an assassin. Revenge is a dish best served cold from a wicker hamper.

The good news is that since Jeremy Corbyn let Theresa May off the Budget hook at Prime Minister’s Questions, most of his MPs no longer hate him. The bad news is that many now openly express their pity. It is whispered that Corbyn’s office made it clear that he didn’t wish to sit next to Tony Blair at the unveiling of the Iraq and Afghanistan war memorial in London. His desire for distance was probably reciprocated, as Comrade Corbyn wanted Brigadier Blair to be charged with war crimes. Fighting old battles is easier than beating the Tories.

Brexit is a ticket to travel. The Independent Parliamentary Standards Authority is lifting its three-trip cap on funded journeys to Europe for MPs. The idea of paying for as many cross-Channel visits as a politician can enjoy reminds me of Denis MacShane. Under the old limits, he ended up in the clink for fiddling accounts to fund his Continental missionary work. If the new rule was applied retrospectively, perhaps the former Labour minister should be entitled to get his seat back and compensation?

The word in Ukip is that Paul Nuttall, OBE VC KG – the ridiculed former Premier League professional footballer and England 1966 World Cup winner – has cold feet after his Stoke mauling about standing in a by-election in Leigh (assuming that Andy Burnham is elected mayor of Greater Manchester in May). The electorate already knows his Walter Mitty act too well.

A senior Labour MP, who demanded anonymity, revealed that she had received a letter after Leicester’s Keith Vaz paid men to entertain him. Vaz had posed as Jim the washing machine man. Why, asked the complainant, wasn’t this second job listed in the register of members’ interests? She’s avoiding writing a reply.

Years ago, this column unearthed and ridiculed the early journalism of George Osborne, who must be the least qualified newspaper editor in history. The cabinet lackey Ben “Selwyn” Gummer’s feeble intervention in the Osborne debate has put him on our radar. We are now watching him and will be reporting back. My snouts are already unearthing interesting information.

Kevin Maguire is the associate editor (politics) of the Daily Mirror

Kevin Maguire is Associate Editor (Politics) on the Daily Mirror and author of our Commons Confidential column on the high politics and low life in Westminster. An award-winning journalist, he is in frequent demand on television and radio and co-authored a book on great parliamentary scandals. He was formerly Chief Reporter on the Guardian and Labour Correspondent on the Daily Telegraph.

This article first appeared in the 23 March 2017 issue of the New Statesman, Trump's permanent revolution