The Euro Zone as revealed in Cyprus

The expression of the bankruptcy of an economic model mainly centred on financial activities, the Cypriot crisis has resulted, quite logically, in the establishment of a financial assistance plan for the island, which thus becomes the fifth country in the euro zone to benefit from aid. The unusual nature of the bailout plan, which for the first time provides for a contribution from savers towards restructuring of the banking system, has given it an impact completely unrelated to the economic weight of Cyprus at European Union level, at the risk of transforming this financial micro-crisis into a major crisis of euro zone governance.

• Primary Source

ESO: Background Information: Speech: Economic Dialogue on financial assistance to Cyprus http://www.europeansources.info/record/speech-economic-dialogue-on-financial-assistance-to-cyprus/

ESO: Country Information Guide: Cyprus http://www.europeansources.info/record/information-guide-cyprus/

ESO: Background Information: Leaked report damns Cyprus on money laundering http://www.europeansources.info/record/leaked-report-damns-cyprus-on-money-laundering/

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