Select a language
The controversial Cyprus bailout has revived the risk of the systemic Eurozone crisis.
The island’s banks “must be recapitalised directly through the European Stability Mechanism (ESM) on an individual basis,” says the weekly, adding –
The best that can probably be done now is to spare the insured depositors, bail in other bank creditors and, given the economic damage caused in the past week, increase the amount of the bailout.
Capital flight when the banks eventually reopen is inevitable, the newspaper continues. Its economic plan is in tatters and Cyprus needs to find a new model through exploiting its newfound gas reserves and reunifying the north and south sides to boost GDP and tourism.
Do you like our work?
Help multilingual European journalism to thrive, without ads or paywalls. Your one-off or regular support will keep our newsroom independent. Thank you!
