Yanis Varoufakis
By voting down the bailout proposal that would violate the deposit insurance agreement between a member-state of the Eurozone and its citizens (see my earlier post for an analysis), Cyprus parliamentarians offered the Eurozone a reprieve from the stupidest and most potentially destructive Eurogroup decision since this Crisis began three years ago. Europe now has, thanks to Cyprus’ Parliament, a second bite at the cherry and it is up to its leaders to make amends, to understand the error of their ways, and to come up with a sensible alternative. We may disagree on what that is. However, it is difficult to imagine that there is anyone who continues to believe that allowing a member-state of the Eurozone to default on the deposit insurance scheme (i.e. confiscating deposits less than 100 thousand euros) was a bright idea.
