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The article reports on the controversy surrounding the international bailout deal for Cyprus which has turned out to be a potentially decisive test for discipline and austerity in Europe pushed by Germany. It states that the bailout deal has prompted concerns about European solidarity and the region's ability to hold out together for the longer term. It adds that the Cypriot parliament rejected the bailout deal even if President Nicos Anastasiades has revised the terms.

The article reports on the bailout package for Cyprus that was approved in March 2013 which reflected some important new markers for the future of the European Union and the countries that use the euro. It is noted that the deal contains stricter rules and validates Germany's push for a more responsible bank management. Some observers believe that Cyprus will follow Greece into a deep recession or depression.