Cyprus is the latest eurozone country to receive a bailout to save its troubled banks. But the last-minute deal to stave off bankruptucy and a disorderly departure from the euro creates many more problems for Europe. The way the crisis has been managed raises questions about whether the EU authorities have a clear and consistent vision of what to do next.

CALM of a sort has been restored in Cyprus with a last-minute 10 billion euros bailout resolving its immediate banking crisis. But it leaves huge question marks over the future of the Cypriot economy, the euro and the impact on other eurozone countries, with the likelihood that a bank bailout will be followed by bailing out the count...

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Professor Enrico Colombatto
But this will not be the end of the story and new critical episodes will emerge. It appears that whatever the size or nature of the problem, the European authorities are willing to negotiate, even when negotiations cause further damage to the prestige of European institutions
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