Lessons and warnings from Cyprus

The news from Cyprus would have arguably struggled to reach the front page in most European nations if not for the envisaged measure of tackling the financial problems of the country by seizing part of the money deposited – both by foreigners and locals – in the banks of the island. This was of course a major step which surely should have been considered more carefully by the finance ministers of the Eurogroup in the early hours of March 16. This for at least three reasons.