Cyprus rescue deal spreads fear beyond its shores

Students take part in the Greek national holiday parade in Nicosia, Cyprus. Credit: DPA

Video report by James Mates.

The Cyprus rescue deal has sent shivers through southern Europe after a key figure in the eurozone said it would be a model for how future bailouts would work.

The country's president sold the deal to his people as the best outcome for Cyprus - and the only one that could stave off the threat of bankruptcy.

But it will not only penalise wealthy savers, it could also slowly strangle businesses on the island

Meanwhile the words of Dutch finance minister Jeroen Dijsselbloem will be of serious concern to countries like Spain, Portugal and Italy.

Dijsselbloem makes it clear that future bailouts will be "pushing back the risks" away from the eurogroup to the country itself - which would mean more taxes on savers and banks.