Deauville Zombie Strikes as Cyprus Tax Inflames Crisis
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The Deauville zombie is back.
Europe’s aid package for Cyprus brought back memories of the German-French deal at the English Channel resort of Deauville in October 2010 that made bond writedowns part of the debt-crisis management toolkit. Investors responded then by pushing Ireland and Portugal to follow Greece into bailouts. Only 14 months later did European leaders decide that imposing losses on creditors wasn’t such a good idea after all.