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Europe Weighs Cyprus’s Fate After Lawmakers Reject Deal

German Chancellor Angela Merkel signaled a readiness to engage with Cyprus after its parliament rejected a levy on bank accounts, as the Cypriot government scrambled to come up with an alternative source of financing.

Cypriot banks must contribute to a 17 billion-euro ($22 billion) rescue package after lawmakers torpedoed a plan to tap deposits, Merkel said in Berlin today. In the Cypriot capital, Nicosia, President Nicos Anastasiades discussed proposals for a “Plan B” with international creditors, state-run CyBC said.