Cyprus ordinary people's hard earned saving been taken to pay billionaire bankers and bond holders

Cyprus was one of the countries my father was stationed when he served  with the United Nations. They were a peace keeping force tasked with keeping the two sides of the island away from killing each other. He always told us about how beautiful a country it was. If you consider that he and his fellow Irish soldiers were in a quasi combat setting then it must have been really beautiful in order for them to notice. This amazing island is the setting for one of the biggest mistakes that the EU has ever created. This is saying somethine considering the complete mess they have mad with the rest of Europe.
They proposed that the Government in Cyprus deducted a tax from the bank deposits of people. They wanted 6.75% from people with less than Euro100,000 on deposit and 9.99% from accounts over 100,000. These will then be used in effect to pay back the countries debt.
Clear away all the technical terms and what it means is that normal peoples saving will be reduced by 6.75% and the bondholders who own the countries debt will be paid fully from the saving of people. Now there is a political element in this as alot of money from Russia has seemingly been hidden in Cyprus bank accounts.
Still alot of ordinary people would have had money taken out of their hard earned savings to repay billions to bondholders and banks who are worth trillions of euros.
This is also setting a precendent for future bailouts. Will the EU insist on the same when Spain and Italy eventually collapse or what if we in Ireland need a second bailout will we be forced to do the same thing.
This fear of it been imposed on other countries could lead to a huge financial crisis if deposit holders decide to take their money out of the banking system in order to avoid these taxes.
It turns out now that the EU has backed down on to some extent on this proposal. Is it not worrying that the minute I and most people heard of this measure that we realized that it was obviously a huge mistake and that it could have huge consequences. However the people in power in Europe didn't foresee the crisis it could cause and this is what really worries me. Are they enclosed in their little bubble so much that they cant see the effects of their policies on people.