“You are welcome, sir, to Cyprus—Goats and monkeys!”
The famous line from Othello means the Bard understood the tenuous political and financial situation that marks the small island nation long before anyone else. But even he might not have imagined current events. It’s so bad it risks social unrest, according to PIMCO CEO Mohamed El-Erian.
“Europe lit the fuse of two sticks of dynamite on Saturday,” El-Erian told CNBC’s “Squawk Box” on Monday. “One is very clear. By including small depositors, they are risking social unrest, political disorder, and an exit from the eurozone.”
At issue is the bailout proposal to tax bank savers in Cyprus, which the network says calls into question the “sanctity of bank deposits in Europe.”
El-Erian added that small depositors should be exempt, and that’s exactly what Cypriot ministers are trying to do ahead of a Tuesday parliamentary vote.