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Draghi Wins Cyprus Chicken Game in Test Run for Bigger Bailouts

Mario Draghi’s brinkmanship has worked -- for now.

The European Central Bank’s ultimatum to Cyprus to commit to a 10 billion-euro ($12.9 billion) rescue showed Draghi playing a harder and more public game than in any bailout before. While that’s easy enough with a country like Cyprus, officials may shirk from such tactics with bigger nations, said economists from Citigroup Inc. to ABN Amro Bank NV.