Cyprus crisis offers a harsh lesson in reality

Ignoring the ECB's threats and risking a banking failure is not a cost-free option, writes Cormac Lucey.

24th March, 2013
Cypriots and foreigners queue to withdraw money from an ATM at a Laiki (Popular) Bank branch in the centre of the capital, Nicosia, last Thursday. Photo: Getty

Since the autumn of 2010, Irish politics has been dominated by a binary choice: accept the bitter medicine prescribed by the EU/ECB/IMF troika or reject that medicine.

Acceptance of the troika programme sends the government further down the road of difficult budgetary consolidation. Rejection of the programme would appear to keep open valuable room for policy manoeuvre. This was the logic of Labour leader Eamon Gilmore's February 2011 remark that the core choice facing...

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