The Cyprus bailout is a disaster for the EU

Cyprus has been forced to apply a levy on ordinary bank deposits of the type that fall under the €100,000 deposit guarantee that is required by a European Directive. This is an upper limit for guarantees, taking away the rights of countries to have a higher one or indeed to have only a 90% guarantee as the UK did in order to keep investors on their toes. This harmonisation was done to keep a level playing field so that depositor money would not flow from country to country at times of scares ...