ECONOMY

Dijsselbloem statement offsets bailout deal relief

European shares fell on Monday, led lower by financial stocks, as relief over a Cyprus bailout faded after the Dutch finance minister said the stern deal could set a new template for the region.

The pan-European FTSEurofirst 300 index provisionally closed down 0.1 percent at 1,188.09 points, having been up 0.9 percent at one stage, while the eurozone’s blue chip Euro STOXX 50 index fell 1.1 percent to 2,651.23 points.

Dutch Finance Minister Jeroen Dijsselbloem’s statements raised worries that other debt-ridden countries with troubled banks may face similarly punitive measures as Cyprus, which agreed to close down its second-largest bank and inflict heavy losses on big depositors.

“The action taken sets a dangerous precedent. I just think there’s still a little sense of unease,” said Berkeley Futures associate director Richard Griffiths.

Wall Street stocks opened higher, but by midday they were also trading lower.

[Reuters]