The EU appears to have a trust problem, as in investors are having a difficult time trusting the leadership and ECB to handle crises effectively. Bailouts are always contentious events, but the EU "brain trust" seems to have simply fanned the flames of discontent instead of easing fears. The EU has imposed rather unfavorable terms on previous bailouts. The bailout terms for Cyprus are not different, essentially forcing the government there to "tax" bank deposits by 10% to secure emergency loans. This seems to be a no-win situation for Europe. On one hand, if the government fails to ratify the proposal, Cyprus will likely default. On the other hand, if the government approves the measures, fears that the EU can grab citizens' money at any point without voter say-so could spread, possibly resulting in bank runs.