Cyprus bailout reinforces financial repression

EuroFinUse strongly opposes the bank crisis approach of holding depositors responsible for bank failures. We therefore welcome the clarification of Mr. Dijsselbloem, president of the Eurogroup, stating that -contrary to his previous declaration- the Eurogroup is not considering the Cypriot bailout as a model for future bailouts of other EU Member States. We however, regret that institutions have shown so little respect for a fundamental pillar of retail investors’ confidence, the almost total security of savings in bank accounts under 100,000 euros, causing major concerns to investors and markets throughout the EU.

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