Stournaras Says Nobody Wants ‘Domino Effect’ From Cyprus

Greek Finance Minister Yannis Stournaras said he and his euro-area counterparts stopped short of debating concrete proposals to ensure the debt sustainability of Cyprus during talks today on a planned aid package for the country.

Stournaras spoke in Brussels after Cypriot Finance Minister Michael Sarris attended his first meeting of the 17-nation euro since a new government in Cyprus took office last week.

Dutch Finance Minister Jeroen Dijsselbloem, who chaired the meeting, refused in a press conference afterward to rule out possible losses for Cypriot bank-account holders in any Cypriot rescue. The new Cypriot government opposes such a step as it seeks to wrap up negotiations by the end of the month on what would be the fifth aid package for a euro country.

“Nobody wants a domino effect in Europe,” Stournaras told reporters. “We had an initial discussion. I think things are going in the right direction.”

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