Events in Cyprus have caused doubts in the minds of those who have substantial deposits in banks elsewhere. For example, if Spain was to request a bailout, would the same conditions be applied meaning that savers would lose money.
Mariano Rajoy, in a joint conference with François Hollande on Tuesday was at pains to point out that this could not happen in Spain. Both the leaders stated that the 'guarantee of deposits is irrevocable'.
The main difference between Cyprus and other members of the Economic Union is that many of the savers on the island are not from the European Union.
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"The main difference between Cyprus and other members of the Economic Union is that many of the savers on the island are not from the European Union." Does this matter? Do you think that this would come into the equation as far as other European governments are concerned? After all, Cyprus has got away with it due to depositors allowing themselves to be trampled over by their banks... setting this example may well be on the minds of other governments to do likewise when the time comes for further bailouts. (And believe me... rather than lying and corrupt politicians, there WILL be further bailouts, even in Senor No-Joy's own country).
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