The original plan in Cyprus – approved by the Eurogroup, but rejected by the Cypriot parliament – was to steal the money from any bank regardless of its health, and from small depositors regardless of the €100,000 guarantee. They have shown their character. The Eurogroup don’t give a damn about moral hazard. They are thieves.
Furthermore, the northern powers skip lightly over their own responsibility for what has happened. They seem not to recognise that EMU was a joint venture. The creditor states were entirely complicit. They flooded the South with cheap debt. They failed to understand the ruinous implications of monetary union just as badly as the southern states.