I don't think it was clear at all.

1) 18 months ago, banks in Cyprus passed EU bank stress tests.

2) The EU has a deposit guarantee.

3) The new Prime Minister was elected because he promised deposits would never be touched.

4) Other countries received bail-outs without affecting deposit holders.

Given the above, I think it would be quite reasonable for an ordinary Cypriot to put faith in the EU and their elected government, and just get on with their lives.

My understanding is that the EU itself does it guarantee bank deposits but rather it requires members states to have bank guarantee schemes.

If it was obvious, why didn't that spark a run on the banks? Why did people seem to think their deposits were safe?