Forex Flash: Most biting criticism of Cypriot package was principle, not tax itself - BBH

Brown Brothers Harriman analysts note that the most biting criticism of the Cyprus package was about the principle, not simply the amount of the tax on small depositors.

They write, “Nevertheless, press reports suggest that there is not a run on other peripheral banks that some had feared as depositors across Europe would see Cyprus as a precedent. As we have noted, there was precedent for Cyprus as well in Europe. Italy imposed a one-off tax on all depositors (and other savings) to reduce its debt in order to join EMU in the first place.”