BERLIN, March 27 (Reuters) – A wave of anti-German sentiment
unleashed by the harsh conditions imposed in a 10-billion euro
bailout for Cyprus has stung politicians in Berlin and may
harden resistance to further euro zone rescue measures in the
run-up to a September election.

Although Germany was not alone in pressing for a “bail-in”
of depositors in Cypriot banks that will force massive losses on
wealthy savers and probably end the island’s run as an offshore
financial centre, it has taken much of the blame.

BERLIN (Reuters) – Europe’s onerous bailout deal for Cyprus has burnished Angela Merkel’s reputation as a tough defender of German interests and removed one of the biggest threats to her re-election prospects half a year before voters go to the polls.

But the agreement, struck in the early morning hours of Monday in Brussels, comes at a price. It is likely to fan resentment in southern Europe over Germany’s bitter reform medicine and may ultimately increase the risk of backsliding by a reluctant government in Nicosia.