Eurogroup chief’s comment sparks controversy

Having stirred a controversy by saying that the Cyprus bailout was a template for resolving banking problems in the Union, Eurogroup chief Jeroen Dijsselbloem said on the 26 March 2013 there were no apparent signs of increased withdrawals of savings within the single currency zone.

Dijsselbloem described the Cypriot bailout, which wiped out some top bank bondholders and will impose big losses on large depositors, as a new template for resolving eurozone banking problems.

He later appeared to backtrack, saying Cyprus was a specific case with exceptional challenges.

The comments by Dijsselbloem, the Dutch finance minister who has headed the eurozone finance minister for less than two months, infuriated politicians.

ESO: Background Information: Little-known Dutchman takes over as Eurogroup Chair http://www.europeansources.info/record/little-known-dutchman-takes-over-as-eurogroup-chair/

ESO: Background Information: Officials grilled over Cyprus bailout fiasco http://www.europeansources.info/record/officials-grilled-over-cyprus-bailout-fiasco/

ESO: Background information: Eurogroup Statement on Cyprus, 25.03.13 http://www.europeansources.info/record/eurogroup-statement-on-cyprus-2/

ESO: Background information: The President of the Republic returns to Cyprus http://www.europeansources.info/record/the-president-of-the-republic-returns-to-cyprus/

Spiegel Online International, 27.03.13: False Start: Is the New Euro Group Head Up to the Task? http://www.spiegel.de/international/europe/euro-group-head-jeroen-dijsselbloem-under-fire-for-cyprus-comment-a-891102.html

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