Schäuble says Cyprus is in a dramatic situation

Speaking at the Bundestag debate on Cyprus, German finance minister Wolfgang Schäuble has said that Cyprus is in a dramatic situation (watch live here). Schäuble has said that advances are being made in tackling the Eurozone's debt crisis, and that markets are less nervous as progress is being made.

However the minister has said that Cyprus is at risk of a sovereign default without aid, and in an acknowledgement of weaknesses within the Eurozone said that Italy and Spain could have been at risk if help was not given to Cyprus.