The final deal to bail-out Cyprus' troubled banks may be a victory for the 'Troika' - the European Commission, the European Central Bank and the International Monetary Fund - but the raid on depositors accounts and the prospect of capital controls are "deeply worrying" for the future of theEurozone, says Jeremy Warner.
"It is the first time the Eurozone has required ordinary depositors to bail out banks and many stand to lose a lot of money.
"If they impose capital controls, you might as well say, as far as Cyprus is concerned, it is the end of the euro," Jeremy Warner said.
"A monetary union depends vitally on the free flow of capital from one area to another. Once you interrupt that it ceases to be a proper monetary union."Under the terms of the deal, the Bank of Cyprus, the island's largest lender, will survive but investors not protected by the €100,000 deposit quarantee will suffer a major "haircut" – a forced loss on the value of their investment - over the coming weeks of up to 40pc