Best quote to illustrate the situation, IMO, and it comes from Austria's Thomas Wiesner, president of the EU's Economic and Finance Committee, "The economy is going to tank in Cyprus, no matter what."
Why is it the best quote on the Cypriot condition?
Because it's a tacit admission that the EU has no solution to fix Euromess 2013.
So if the EU doesn't think it can do anything to help the Cypriot economy recover, and that the only solution is -- shhhhhhh...austerity -- unworkable and ineffective, then there's little incentive to stay in the EU.
What if, during the 2008 banking crisis, the US federal government were to tell Alabama that excess inflows from US taxpayers would stop and their banks would be unilaterally allowed to fail, unless Alabamans were taxed on their bank deposits? I would expect to see a fight for secession or another civil war; wouldn't you?
On the positive side, when Cyprus does leave the Euro behind, I'm grabbing a new passport and booking my first-ever trip to Cyprus!
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