greek flagThe parliament in Cyprus may block the government's attempt to seize money from the savings accounts of its citizens as a way to raise money to get access to bailout funds. If so, the anxiety about the action, and its possible effects on the plans of other financially weak EU nations, should drop.

Some analysts believe there could be a sort of contagion, if countries like Greece run out of options to close budget gaps. Cyprus does not have anywhere else to turn for the money, which is the primary reason it took such measures.

According to Reuters:

Cyprus's parliament is unlikely to pass legislation taxing deposits which has prompted turmoil in its banking system, falling short on a condition for an international bailout, government spokesman Christos Stylianides said on Tuesday.

Filed under: 24/7 Wall St. Wire, Banking & Finance, Economy

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