The proposed levy on bank deposits in Cyprus is extremely worrying. If the Cypriot government were to hold a referendum tomorrow asking its electorate whether Cyprus should remain within the Eurozone the result would be a resounding NO.
Even if the levy is watered down, (and this appears likely), the Cypriots will not forget this robbing of their personal assets. Very few of them will think that the governmental plundering of their accounts is a price worth paying for continued membership of the Eurozone and the Economic Community. Surely this development shows that the experiment that was the Eurozone is failing.
It is not even as if the levy is a fair levy affecting all of Cyprus's population equally. Many of the larger deposits will be the property of the self employed and the elderly. These are funds that are needed to fund their businesses and their retirement. The retirement funds associated with governmental officials, the civil servant monolith, won't be affected. The very rich will have most of their funds far outside the reach of the avaricious fingers of the Cypriot government.
Thankfully the United Kingdom Government resisted the temptation of joining the Eurozone. What it now has to do is ensure is that we have the referendum that will get us out of the European straightjacket. What Heath did Cameron must reverse.