Doubts over German approval of Cyprus bailout grow

By: Jamie Coleman

Reuters highlights another media report quoting a member of the German coalition as saying there is no majority possible in the German parliament for a bailout of Cyprus. This follows on a similar report from Spiegel earlier today. As ever, the fear is that banking woes weigh on the sovereign and the sovereign woes in turn weigh on banks outside of Cyprus creating a negative feedback loop. Thank goodness it is a small economy...