The Cypriot banking crisis shows that Europeans have yet to work out the answer to the question, ‘who pays?’

The past week has been a tumultuous one for Cyprus, with negotiations and renegotiations towards a bailout for the country’s embattled banks. While an agreement has finally been struck, Iain Begg writes that the crisis is a direct result of an over-extended banking system: something that also affects other Eurozone members. The solution, to make bank depositors pay, could undermine confidence in the Eurozone’s banking system.