Jeroen Dijsselbloem, the new chairman of the Eurogroup of finance ministers, has backed the plan for a savers raid to rescue Cypriot banks, but underestimated the the extent of outrage and instability caused.
However, Dijsselbloem continued to stress the danger to Cypriot banks:
“In the present situation, I think that there is definitely a systemic risk, and I think that the unrest of the last couple of days has proven this unfortunately,” he told reporters.
He added mistakes were made, but the basic idea is sound:
“As a Chairman you have to find the compromise between the different countries, between the different perspectives and goals that we set out together, and therefore this decision was not stopped by me because it was a compromise, which brought together the different interests, the different goals that we share.”
What is clear is that previous bank bailouts, which leave debt on the books, are a thing of the past.