Editorial Board
Cyprus’s Three-Way Game of Chicken
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Europe’s handling of a bailout for Cyprus is looking more chaotic by the minute. Negotiations have descended into a three-way game of chicken among the island nation, Russia and the euro area’s leaders.
The initial plan to make insured depositors pay for part of the bailout was terrible. The Cypriot parliament rejected it, and now the European Central Bank has set a deadline of March 25, warning that unless a new deal is reached it will pull the plug on the funding that’s keeping Cyprus’s banking system alive.