At the very least, the EU is responsible for tying a whole lot of banking messes together, throwing them in the air, yell "FLY!", watch it drop down, be confident it will fly because of a stress test result, watch it crash, and pretend tying it all together was a good idea and untying it is impossible, all the while that banking mess is burning a hole through the earth like a melting corium from Techernobyl.
The ECB's loose monetary policy and acceptance government bonds at par as collateral definitely made things worse, but that would not have been a problem if the Cypriot government hadn't subverted its banking system or vice versa. No Cypriot money was stolen by the EU, and lots of EU taxpayers's money went to Cyprus. If anything, Cyprus is the beneficiary.
Alas, the fact that most governments inside the EU are actually acting irresponsibly, all the while the EU officials pretend to say it's all good and support stupid national policies, pretend that leaving the eurozone is satanic, and are feeling comfortable with the ECB policies, puts the EU at fault in my book.
No cypriot money was stolen by the EU to its own profit, but the EU did steal cypriot money to the profit of cypriot bank shareholders and other supposedly first-line capital holders. They even tried to break their promise not to touch deposits under 100k.
Cyprus benefits from a loan, all the while it is denied the right tools to put itself out of the shithole. Now it needs a bigger loan, and next month an even bigger one will be required. Yay for that kind of help that doesn"t help.
(I'm not saying cyprus government and central bank are all white, far from it).
