NOTE:  Cyprus is an island about half the size of Connecticut, with a population of about 1.1 million, located in the Eastern Mediterranean south of Turkey.

1. Define the following words as used in the article:

• Euro (para. 1)
• eurozone (para. 1)
• recapitalize (para. 4)
• contagion (para. 6)
• mothballing (para. 8)

2. a) Who is Jeroen Dijsselbloem?
b) How will the eurozone bail out any banks of member countries that are in danger of collapsing in the future, according to an announcement made by Mr. Dijsselbloem?

3. a) How do you think most Europeans who have savings accounts or bonds will react to this news?
b) Ask a parent how he/she would react to this news.

4. Most news reports did not state clearly that the government of Cyprus, in order to secure a bailout from the eurozone, has agreed to forcibly take money from people's bank accounts that have more than $130,000 in them.
Mr. Dijsselbloem has stated:
"If there is a risk in a bank, our first question should be 'Okay, what are you in the bank going to do about that? What can you do to recapitalize yourself? If the bank can't do it, then we'll talk to the shareholders and the bondholders, we'll ask them to contribute in recapitalizing the bank, and if necessary the uninsured deposit holders."
In other words, if the bank can't solve its own money problem, we will forcibly take the money from people who have bank accounts there.
Why do you think no one is plainly stating that the eurozone and Cyprus' government are confiscating private funds, and have said they will do so anytime a bank needs a bailout in the future?

5. Why do you think Mr. Dijsselbloem later in the day tried to backtrack from his comment that the way the eurozone handled the Cyprus bank crisis (taking money from people who had savings accounts with more than $130,000 in them to secure a loan from the eurozone) would be the model for dealing with future banking crises across Europe?

6. What do you think: should it be the responsibility of individuals who open bank accounts or purchase bonds to bail out their bank? Explain your answer.