Cyprus rescue may set unwelcome euro zone precedent

Cyprus hardly seems to have the sort of debt crisis that could provoke a domino effect across the euro zone; its economy is tiny and the bloc’s financial exposure to the island is modest.

Nevertheless, Cyprus is fast becoming a risk for efforts to tackle problems in the euro zone’s much larger economies because almost any way of solving the crisis - from restructuring its debts to imposing losses on banks - is likely to set a precedent for other troubled states.

via Business feed http://www.scmp.com/business/economy/article/1150812/cyprus-rescue-may-set-unwelcome-euro-zone-precedent