Cyprus needs to do whatever they can in order to keep their financial system afloat and to avoid plunging their country into chaos and turmoil. If that means the implementation of a deposit levy, then so be it. Desperate times call for desperate measures, as the old saying goes I hear.
There is a difference between taxation and robbery. Taxes pay for important government services such as police, fire protection, and roads. This proposed deposit levy is robbery. It is a forceible transfer of wealth from private citizens to private banks. The people of Cyprus should not have to pay the price for the imprudence and bad decisions of bankers.
What is the definition of robbery? It is someone taking money from other peoples accounts to make themselves richer. It does not matter who is doing the taking. It still looks like a shady deal. If the banks allow this to happen in Cyprus, where else would they allow it to happen? It is on the edge of the slippery slope for the banks to even think of such a thing. I put my money in the bank because I believe my money is safe. If I no longer believe my money is safe, I might decide to stuff it in my mattress or bury it in coffee cans in the backyard. Oh wait, that already happened and not too long ago. If I were the banks I would really think this out first. Possibly destabilizing the financial institutions all over the world in order to possibly stabilize Cyprus should not be a winning proposition in anyone's mind.
It's just plain theft if they issue that levy on people. They've already had their taxes taken out, which is bad enough. Taking things directly out of accounts of people to prop up the poor decisions of banks and other entities is just straight up theft.
People benefited from the overspending of their governments, and this cannot be denied, but it was still ultimately the government that spent that money. If the governmental structure cannot be trusted by the citizenry to be responsible with the tax money, then that structure deserves to collapse. And it certainly has no right to try to prop itself up by stealing directly from the citizens.