|Deal rejected by the masses|
But the potential ramifications go beyond Russia - compared to Cyprus, other countries have even larger banking sectors relative to GDP. For example, in Luxembourg, the euro zone’s biggest champion of banking secrecy, it is more than 20 times GDP - the Luxembourg government has admitted it is “concerned about recent statements and declarations” on the “alleged risks” of out-sized financial sectors. And Malta’s finance minister has expressed similar concerns about what would happen if a second Mediterranean island encounters such problems.
What about the City of London, a major contributor to the tax-base of the UK and no stranger to ‘casino banking’ - a pioneer of financial speculation, in fact. If ‘stability levies’ can be imposed on Cypriot banks in times of crisis, then why not in the UK?