While Cyprus is a relatively small economy in the overall EU scheme, the announcement that EU regulators wanted to require banks there to seize 10% of Cypriots’ accounts (equal to 5.8 billion EURO) as part of a bail-out package is causing great concern and rattling investor confidence across the wider EU markets. Despite having somewhat addressed the Greek, Irish and Portuguese debt crises, many experts now believe that the large northern countries in the EU are apparently willing to against risk a meltdown in the Euro by demanding that the citizens of Cyprus (along with more than a few Russians who use the banking system there to “clean” deposits between Russia and Cyprus) directly pay for some portion of the bank bailout, rather than increasing taxes as was done for the others. Though the Cyprus government has turned the EU back on this demand for now, this latest EUR dust-up does have the potential to significantly hit investor confidence, and with it the capital available for companies to invest in new assets, including new technology solutions. Prior to the big Euro crisis that first began heat up in 2010, we were seeing spending on E/CTRM technologies in Europe accelerating a … continue reading
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