Bloomberg View: Straightening Out Cyprus
What the EU must do
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The March 25 Cyprus bailout deal is a big improvement over the first botched attempt. It doesn’t repeat the error of breaching the guarantee on bank deposits up to €100,000 ($127,830). Instead, it restructures the two biggest banks and forces their creditors, including large depositors, to take huge losses.
Yet the euro area’s leaders must do a lot more to convince Europeans and the markets that they’ve drawn the right lessons from this debacle. They need to say why Cyprus is an exception and commit to integrating the euro area further so it’s less vulnerable to such crises. They’re failing on both points.