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Euro zone discussed capital controls if Greek exits euro: sources

Posted By admin On June 12, 2012 @ 3:08 am In World News | Comments Disabled

Luke Baker
Reuters [1]
June 12, 2012

European finance officials have discussed limiting the size of withdrawals from ATM machines, imposing border checks and introducing euro zone capital controls as a worst-case scenario should Athens decide to leave the euro.

EU officials have told Reuters the ideas are part of a range of contingency plans. They emphasized that the discussions were merely about being prepared for any eventuality rather than planning for something they expect to happen – no one Reuters has spoken to expects Greece to leave the single currency area.

But with increased political uncertainty in Greece following the inconclusive election on May 6 and ahead of a second election on June 17, there is now an increased need to have contingencies in place, the EU sources said.

The discussions have taken place in conference calls over the past six weeks, as concerns have grown that a radical-left coalition, SYRIZA, may win the second election, increasing the risk that Greece could renege on its EU/IMF bailout and therefore move closer to abandoning the currency.

Full article here [1]


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URLs in this post:

[1] Reuters: http://www.reuters.com/article/2012/06/11/us-eurozone-greece-capital-idUSBRE85A0ZB20120611

[2] Biggest Greek bank warns of dire euro exit fallout: http://www.prisonplanet.com/biggest-greek-bank-warns-of-dire-euro-exit-fallout.html

[3] Greece to Leave Euro Zone on June 18: Wealth Manager: http://www.prisonplanet.com/greece-to-leave-euro-zone-on-june-18-wealth-manager.html

[4] Greek vote would be on euro membership: Finnish minister: http://www.prisonplanet.com/greek-vote-would-be-on-euro-membership-finnish-minister.html

[5] Greek Referendum Threatens New Euro Zone Crisis: http://www.prisonplanet.com/greek-referendum-threatens-new-euro-zone-crisis.html

[6] Euro zone agrees bailout for Greece: http://www.prisonplanet.com/euro-zone-agrees-bailout-for-greece.html

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