It’s tempting to dismiss events in Cyprus as insignificant. Mainstream politicians and investors, desperate to keep the flame of Western recovery flickering and the asset price rally on track, insist that the country is “a special case”. After all, they say, this tiny Mediterranean nation accounts for less than one third of one percent of the Eurozone economy.
The hole caused by a pin, though, is an even smaller percentage of the surface area of an inflated balloon. It still causes a pretty big bang. The hard, sharp realities of the single currency’s internal contradictions, similarly, now loom over all member states and, in fact, the entire world economy.