If it were "handled well," you'd be OK with them stealing your money for it?
Theoretically no, just like most of the things governments do seem to me to be usurpation of citizens' freedoms, but pragmatically, yes.
Maybe. Maybe it wouldn't even have occurred.
What makes you even suspect that could be the case? Through what mechanism did the EU cause the Cypriot government to be delinquent in its supervisory duties?