Share on
HTML EMBED
Click to Copy

Latest Episodes

Share on
HTML EMBED
Click to Copy
Share on
HTML EMBED
Click to Copy
Marketplace Morning Report
Share on
HTML EMBED
Click to Copy
Marketplace Morning Report
Share on
HTML EMBED
Click to Copy
Share on
HTML EMBED
Click to Copy
Marketplace
Share on
HTML EMBED
Click to Copy
Marketplace Morning Report
Share on
HTML EMBED
Click to Copy
Marketplace Morning Report
Share on
HTML EMBED
Click to Copy
Marketplace Morning Report
Share on
HTML EMBED
Click to Copy
Share on
HTML EMBED
Click to Copy
European Debt Crisis

Cyprus capital controls threaten fate of the euro

Stephen Beard Mar 28, 2013
Share Now on:
HTML EMBED:
COPY

Banks in Cyprus reopened today after a two-week closure following a crisis over an EU-IMF bailout. Strict controls on the level of withdrawals have prevented a bank run. But the restrictions are raising fresh doubts about the future of the euro.  

This is the first time that capital controls have been imposed in the eurozone and some analysts say they violate the spirit of the monetary union. People are supposed to be able to use their euros in any of the 17 countries that adopted the single currency. But now that right is restricted in Cyprus.

Michael Arghyrou, a Greek Cypriot lecturer at Cardiff Business School, says the capital controls are an ominous  sign.

“They will effectively be creating a situation whereby Cyprus will be a second-tier euro member and if this principle is applied anywhere else, this may well be the first step to the euro’s demise,” he says.

Slovenia, Malta and other small euro member states are reported to be feeling vulnerable. 

How We Survive
How We Survive
Climate change is here. Experts say we need to adapt. This series explores the role of technology in helping humanity weather the changes ahead.