Nobbled in Nicosia

After a week of brinkmanship, the politicians in Cyprus have blinked first and caved in to what the Eurozone proposed in the first place.  Given the tiny amounts involved, the measures have been extraordinary and punitive - other, bigger states that operate the Euro have suffered pain but not in this way.  Indeed, ironically, it was the Eurozone's approach to Greece that sparked the crisis in Cyprus, but the Eurozone hierarchy have no shame and maybe are trying to deflect attention away from their own incompetent piecemeal approach to the stabilising the Euro.
A big chance has also been missed.  When there was speculation about the fragility of the Cypriot economy - and so none of this should have come as a surprise - concurrent mutterings was that the Germans would take the opportunity to save Cyprus in return for the unification of the island (the Greek Cypriots voted against the Annan peace plan, even though the Turkish Cypriots voted in favour).  But the hammerings of Greece, Ireland, Portugal, Spain and Italy has exhausted the patience of the Eurozone paymasters, especially Germany.  Cyprus is suffering in this way almost for being slow in going bust.  A great opportunity has been lost to achieve peace in this divided island.  The internationally unrecognised (bar Turkey) Turkish Republic of Northern Cyprus is doing very well indeed, benefitting from the economic powerhouse that is its Turkish protector - they are far from finished in Famagusta.  Despite bank accounts under €100,000 being protected the official Cyprus faces austerity-induced depression.