Darvas, Zsolt, (2013), ‘Cyprus deal: the right intentions but major flaws’, www.bruegel.org, 18 Μαρτίου.
On Saturday morning, after a marathon meeting of the Eurogoup, it was decided to impose a one-time wealth tax on deposits in Cypriot banks: 6.75% on deposits below €100,000 and 9.9% on deposits above this threshold. Involving depositors was a wise decision and a wealth tax is a mild form of bailing-in, as I argued in a post last week.