Lessons from Cyprus will consolidate pan-European financing

As the dust settles on Cypriot bailout talks, the break in the link between the sovereign and the banks marks the beginning of a brave new and more stringent world for the eurozone, writes Europe correspondent Ann Cahill

THE deal over Cyprus means the eurozone has finally succeeded in breaking the link between the sovereign and the banks.

It has arrived at a set of rules almost despite itself. But it is a pity that, in the wake of this brave new world, is the wreckage of the Cypriot economy: Savers, including businesses, with more than €100,000 in the popular Laiki bank are losing everything and those in the second, Bank of Cyprus, are losing up to a reported 40%.