Cyprus: the stone on the beach — its financial problems and the eurozone
So here we go again — the world’s single biggest currency back in play.
Cyprus is a tiny economy but the treatment of its financial problems by the eurozone could have symbolic and far-reaching consequences. Cyprus is like a small stone on a big wide beach casting a long shadow all the way down the beach. It casts a long shadow because the sun over Europe is so low.
What happens in Cyprus has this shadow effect because potentially: it affects the attitude of depositors and capital market creditors in the eurozone generally and especially the countries with high debt ratios; it crosses the line of failing to protect deposits, thereby removing the confidence of depositors elsewhere in Europe; it causes creditors to question whether the eurozone assurances that Greece was a one-off are credible; it reduces the credibility of a banking union with EU-wide depositor insurance, EU-wide bank regulation and an EU-wide last-resort new money facility for failing banks; and there could be geopolitical consequences…
Click on the link below to read the rest of the Allen & Overy briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from The Lawyer
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
At the time of its launch Accutrainee was described as a revolutionary change to the training model. Has it proved to be so? Not really.