Cyprus: money laundering and tax evasion : Eurogroup ministers raise the stakes for Cyprus

Euro zone finance ministers will let an independent commission examine charges of money laundering in Cyprus. Only then, they say, will they begin to think about an aid program for the highly indebted island country. 

When new Eurogroup chief Jeroen Dijsselbloem chaired his first meeting of the 17-nation group on Monday (10.02.2013), the difficult decision on how the EU can help ailing Cyprus was not on the agenda - yet. The Eurogroup is waiting for the outcome of February's presidential elections on the island to know whom to negotiate with.

Cyprus' President Demetris Christofias is the EU's only communist head of state and has close ties to Moscow. Russian financial ties to the meanwhile crippled banks on the island country are just as close. Accusations of money laundering and tax evasion hang in the air - one reason the German government has hit the brakes on the issue of granting a rescue package to Cyprus.

Germany insists the bank issue has to be resolved first. German Finance Minister Wolfgang Schäuble said the ministers decided Cyprus must "set up an independent institution to reliably document the implementation of money laundering standards in Cyprus." He added Cyprus must do more in that respect. Several German politicians have also demanded taking untapped Cypriot natural gas reserves as security for the bailout package.

Read more: Eurogroup ministers raise the stakes for Cyprus | Europe | DW.DE | 12.02.2013