Cyrpus has long been an economic basket case. When the EU converted to the Euro, one of the nuttier ideas was to include Cyprus in the zone. And since the collapse of any member’s economy would have deleterious effects on the stability and viability of the currency throughout the Eurozone, the other member states have to step in and bolster Cyrpus from time to time.
But France, Germany, et al, are a bit tired of shoveling money that way. So while they’re gonna make one more round of “loans” they’re also going to take a bit of payback.
As Dave in Texas quotes DrewM at the Mothership,
The Eurozone is doomed. It’s a matter of when, not if, the system collapses.
Ordinarily, I wouldn’t care. Except that instability in Europe tends to eventually involve large numbers of Americans traveling to foreign shores and getting shot at.
My other concern is, just how long before some gallant public servant here in America decides that an arbitrarily imposed “one time, one off” “tax” or “levy” is a good idea?
Our current tax code is a dog’s breakfast, but it at least still has the veneer of legitimacy.