Cypriot courage burns bright

Cyprus’ refusal to accept the terms of a troika-imposed bailout has exposed eurozone ‘solidarity’ as a myth and shows the true forces arraigned against Ireland, writes Ray Kinsella

THE attempt by the troika to sequester the deposits of the people of Cyprus in its ill-conceived bailout was a catastrophic mistake. It also laid bare what has long been evident to peripheral countries, including Ireland. These decisions are being made by an elite who understand neither economics nor history; they are pedlars of discredited myths.

It may be that some kind of deal is done in the next few days — perhaps a bond collateralised by either existing or perspective-energy related assets. Russia may lead, or participate in, such an arrangement. There are likely to be bank mergers. Cyprus has a liquidity problem. It also has a solvency problem which reflects the exposure of its banks to Greece. A “deal” will attempt to put a gloss on the misconceived “bailout”.