European Central Bank Official Confirms the Cyprus "Template"

March 30, 2013 • 10:08AM

As rumors fly about which European nation will be the next to receive the "Cyprus treatment," a top European Central bank official has confirmed the statement by the Dutch chairman of the Eurozone Finance Minister, Jeroen Dijsselbloem, that the seizure of bank accounts in Cyprus is a "template." Dijsselbloem himself, as well as other European authorities, had backtracked from the statement, claiming that Cyprus was "unique."

But European Central Bank Governing Councl member Klaas Knot told the Dutch daily Het Financieele Dagblad today that there was "little wrong" with Dijsselbloem's statement.

"The content of his remarks comes down to an approach which has been on the table for a longer time in Europe," Knot said. "This approach will be part of the European liquidation policy."

Meanwhile, financial wires are full of forecasts of which country will be next to be subjected to the policy. One major target is Slovenia, whose banks are struggling due to a burst real estate bubble, and is estimated to need about 3 billion euro in funding this year. Others listed by Associates Press in a wire today include: Malta, Luxembourg, and Spain.

In Cyprus, President Anastasiades gave a speech to civil servants in the capital, in which he attacked the European and Cypriot banking authorities, but swore not to leave the eurozone. The restriction on bank transactions remain in place, crippling commerce. foreign Minister Ioannia Kasoulides said on March 28 that they could last "about a month."