Markets slide on open following Cyprus fiasco

European markets are down as they open for the first time since news of Cypriot bank depositor hits this weekend. Unsurprisingly Spanish and Italian indices have taken the biggest hits:

FTSE -1.47%
DAX -1.7%
IBEX -2.8%
MIB -2.7%

Allister Heath writes that the Cyprus deal will damage trust:

Above all, don’t lie, especially when it comes to people’s savings. That was a rule European politicians used to understand, especially in a continent where dispossessed middle classes have repeatedly turned to fascists when their savings were wiped out. Today, however, the political class and its corporatist allies have forgotten this golden rule – just as they no longer remember that democracy cannot be replaced by technocrats. Eventually, there will be consequences; they won’t be pretty.

(Full article)