European Monetary Union Update: Cyprus and Italy

            While the fiscal situation in Greece and Spain continues to deteriorate, despite the measures taken by the European Monetary Union to resolve the crisis, Cyprus has asked the European Monetary Union for a bailout, as it holds much Greek debt in the form of bonds.  The island republic inhabited mostly by ethnic Greeks is the most immediate example of the spread of contagion of fiscal crisis from Greece.

            Italy announced over five and a half billion dollars worth of additional budget cuts that will allow a six-month delay of a previously-approved increase in the value added tax, according to ANSA.  The tax cut is intended to increase economic growth.