European Union could pull the plug on Cyprus

Austrian finance minister Maria Fetker has said that Cypriot banks will not open on Friday if there is no new plan, and that if there are no new proposals Cyprus will not get funds from the European Central Bank.

Allister Heath writes on how the crisis in Cyprus illustrates the failures of the European project:

There are now four possible outcomes: either Cyprus surrenders and passes a modified cash grab (possible, but may involve seizing private pensions and could turn ugly); or the Eurozone blinks and hands over cash anyway (quite likely); or Cyprus gets bailed out by Russia, jeopardising the island’s relationship with Brussels (possible); or it becomes the first country to quit the euro (not yet the most likely outcome, but increasingly possible). The Cyprus affair won’t destroy the Eurozone – but it will show the world just how rotten the whole superstructure really is.

(Full article)