Cyprus' lawmakers have overwhelmingly rejected an unpopular tax on bank deposits, throwing into doubt an international bailout needed to avert a banking collapse.
The 56-seat parliament voted against the measure by 36 votes and there were 19 abstentions. One deputy was absent, Reuters reported.
The tax is a condition of a €10 billion (£8.66 billion) international bailout for the island.
Cyprus' rescue deal has sent shivers through southern Europe after a key eurozone figure said it would be a model for future bailouts.
The future is uncertain for the people who must live with the consequences of Cyprus' "painful" bailout deal.
The Dutch Finance Minister has said the bank levy 'bail-in' on large depositors "pushes back the risks" from the rest of the eurozone.