Tempers have been running sky high after the announcement that everyone living in Cyprus would have to pay part of their savings to help bail out the banks.
Today this idea of a levy will be finalised, and everyone there is holding out their breath to see whether their savings will be safe – or not.
The reason why this has caused so much uproar, even in the UK, is as so many Brits, from army bases and others living there will be affected and will also be forced to pay the levy, especially as army members have been promised they would not have to pay- but the same does not go for anyone else. The deal was struck so that Cyprus would receive money from the EU.
The story has made headlines as many fear that this latest crisis for yet another country might plunge Europe back into economic turmoil.
The Sun referred to the plan to have Cypriots bail out their country as a “desperate EU deal”, while the Daily Mail announced: “Despair: Traders in London react yesterday as markets struggled in light of the decision by Eurozone leaders to part-fund a bailout of Cyprus by taxing bank deposits”
The deal has been hugely unpopular, and much blame has been given to Germany, as its leadership had announced that they would not help out the country unless Cypriots themselves contribute to the bailout.
But it is not only the tabloids that are skeptical at the deal. Even the BBC was outraged, and placed the blame: “So how did Europe get itself into this tangle? As always Germany is the starting point. For Chancellor Angela Merkel there was a moral element to this. "Anyone having their money in Cypriot banks," she said, "must contribute to the Cypriot bailout". In other words it can't just be left to the taxpayers of other countries.”
And there can be no doubt that this is in fact, a terrible idea: To take money from savers should not even be considered, not even as a last resort. That is probably why the idea was not accepted by the Cypriote parliament.
I think most people would agree that this has not been a good move, especially in the UK where EU-scepticism is running high as it is.
But the lesson, that I think is even more important in this particular case, is how quick Newspapers, people and politicians were to blame specific countries for a deal that was struck by the European Central Bank and the European commission.
But many countries are unhappy with the Northern European countries, particularly Germany, and have taken this opportunity as an excuse to shift the blame for one country’s failing economy to central Europe, or even some specific country.