Cyprus

Thursday

The Spectator

The empty Budget

Dangerous, unfair, verging on kleptomania: the bailout deal proposed by the EU at the weekend and rejected by Cyprus MPs on Tuesday is everything it has been described as over the past few days, and worse. Now it has been established that the EU views bank depositors as a potential piggy bank to be raided at whim, it is hard to see why anyone would keep significant quantities of cash on deposit in European banks. We are back where we started in 2007, with the threat of Northern Rock-style bank runs across the Continent. Yet the proposed raid in Cyprus is really only different in perception from what is being

Tuesday

Isabel Hardman

What will it take to keep Cyprus in the euro?

How will the eurozone respond to the Cypriot parliament’s overwhelming rejection of the bank deposit levy? There are only a few days in which to make a deal before the country’s banks must re-open, with an ensuing run on deposits. The question is whether Cyprus or the other eurozone countries blink first. Given all members present of the governing DISY party abstained on the vote, there is a chance that an amended bill could come before the parliament again. Indeed, one member, Nicos Tornaritis, said this evening that this would ‘strengthen the bargaining position of the Republic of Cyprus’. This will still require action from other countries, whether in the