Finally everybody had a sigh of relief when Cyprus announced the bailout plan. Painful as it might be for the above-100,000 EUR depositors, it is still a sign that the European Union wants to stay united and is decided to do whatever it takes for this.
But what about the other fiscal paradises which are its members? Are they really worth rescuing? After all, Cyprus proved a valuable point – that even the small countries have their own role in the European financial ecosystem. They act not only as depositors for outside EU countries, but also as gates of entry for investors who want a low-tax route to Europe. From this perspective, EU is wise. Cyprus might not be huge, but still worth keeping for security and taxation reasons…