Jean-Claude Juncker warns of 'loss of confidence' over Cyprus deal

VIENNA: Luxembourg Prime Minister Jean-Claude Juncker warned that a controversial EU bailout deal for Cyprus could lead to a "loss of confidence" during a visit Monday to Vienna.

"I have grave concerns that this will lead to a loss of confidence, not just from the banks but also from the people," the former head of the 17-nation eurozone finance ministers group told journalists in the Austrian capital.

Cyprus agreed a debt rescue package with the eurozone and International Monetary Fund early on Saturday.

But the deal calls for an unprecedented levy on bank deposits in return for the desperately needed 10-billion-euro ($13 billion) bailout, prompting shock and anger in Cyprus.

Juncker, who was meeting with Chancellor Werner Faymann and President Heinz Fischer on Monday, said he did not want to criticise the deal, but joked that: "This is the first (deal) that was made without my help. In that sense, it is deficient."

The Luxembourg prime minister stepped down in January after eight difficult years as Eurogroup chair.