Eurogroup chief considers Cyprus bailout deal the best possible solution

FXstreet.com (Barcelona) - Eurogroup president Jeroen Dijsselbloem faced a grilling in the European Parliament today over the recent Cyprus bailout deal. He defended the final rescue program by saying that it was "the best possible way" to handle the situation.

In the opinion of Dijsselbloem the roots of the crisis on the island do not lie in Europe's problems, but rather in its own dysfunctional banking sector. That's why, he insisted, the Eurozone should have a "resolution mechanism" in place for distressed banks. Still, he reminded that other Eurozone countries hadn't been directly affected by Cyprus´s troubles.

The Eurogroup head also said that capital controls, "unfortunate, but inevitable" had to be imposed in Cyprus, as confidence in banks had been destroyed. The MEPs were rather unimpressed with his explanations and attacked him with questions throughout the session.