Has Cyprus reignited the regional debt crisis, pushing the eurozone to the brink of collapse and risking a potentially destabilising change in the geopolitical order? Or is the country, with only a million people and accounting for 0.2 per cent of the region’s gross domestic product, a small problem that could be solved within days?
These are the two dominant narratives for Europe’s latest woes. And after being caught by surprise by developments on the ground, analysts and market participants have rushed in the last week to choose among what appears to be two competing interpretations involving opposing predictions. Continue reading »