Cyprus crisis. An island too far?

There are many theories as to why the financial crisis in Cyprus attracted severe punishment from the EU and the ECB. Many on the island are saying that the measures imposed on the Republic will only affect 0.1% of the population as not many people ( apart from the politicians and their mates ) have more than 100k in the bank. But the method used is seen as experimental and as a model to be used in other member states so the markets are nervous. The Orthodox church will, for example, be losing 100 million and some of the Russian oligarchs much more. The general population will also be affected as the economy will shrink. The only thing that is clear is that the Euro is and always was an experiment that has not worked!