European stock markets plunge on Cyprus deal

European stock markets have plunged after Cyprus struck a 10-billion-euro ($13 billion) bailout deal to save the country from bankruptcy.

The stocks fell on Monday afternoon after Dutch Finance Minister Jeroen Dijsselbloem, who heads the Eurogroup of eurozone finance ministers, said that the Cyprus model, which includes a heavy tax on bank deposits, could form a template in any future bailout in the eurozone region.

In London, FTSE 100 index of leading companies ended the day down 0.22 percent to 6,378.38 points.

In Frankfurt, the DAX 30 dropped 0.51 percent to 7,870.90 points.

The Madrid Stock Exchange General Index turned to the red, down 2.50 percent, and the Milan Stock Exchange plunged 2.27 percent.

Meanwhile, the euro fell to its lowest level on Monday since November to $1.2830.

Some economic experts say that the bailout package would save Cyprus from bankruptcy and possibly guarantee its future in the 17-nation eurozone.

However, Cypriots have held many demonstrations against the bailout deal, which they say can push the cash-strapped island nation into recession.