This is exactly the EU fault, not Cyprus' government.
EU forced insolvent Cyprus to repay their liabilities by the funds from confiscated bank accounts. This is absolutely unfair. This is illegal.
What do you mean 'forced'? The fact that they were insolvent meant that they couldn't honour their obligations under Cypriot deposit insurance scheme. The EU didn't force them, their lack of money did.
You said it yourself, they could have sold stuff off.