Skip to comments.The EU Is Considering Limiting ATM Withdrawals And Border Checks If Greece Leaves The Euro
Posted on 06/11/2012 9:49:55 AM PDT by blam
The EU Is Considering Limiting ATM Withdrawals And Imposing Border Checks If Greece Leaves The Euro
Luke Baker, Reuters
June 11, 2012
European finance officials have discussed as a worst-case scenario limiting the size of withdrawals from ATM machines, imposing border checks and introducing capital controls in at least Greece 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.
Belgium's finance minister, Steve Vanackere, said at the end of May that it was a basic function of each euro zone member state to be prepared for problems. These discussions appear to be in that vein.
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.
No decisions have been taken on the calls, but members of the Eurogroup Working Group, which consists of euro zone deputy finance ministers and heads of treasury departments, have discussed the options in some detail, the sources said.
As well as limiting cash withdrawals and imposing capital controls, they have discussed the possibility of suspending the Schengen agreement, which allows for visa-free travel
(Excerpt) Read more at businessinsider.com ...
the EU will have to issue new “euros” and retire the old notes. IF Greece leaves and issues new money and the euro remains unchanged then they will have new problems to deal with. With every new currency the old currency has been retired.
Something I’ve noticed in business, sports and politics:
If there is a “worst case contingency plan” in place, those in charge panic and immediately turn to it as soon as anything goes wrong as if no “medium case” contingency plan existed at all.
If is not if friend, Greece will leave Eurozone, and will go back to their currency, which will have to be so inflated just paid off some debts, it will make Weimar republic look to cool to live in late 1920’s and 1930’s.
That is only option they have, and now Espanola and Italia and more will follow. Euro was a concept which I have opposed from beginning, seeing serious faults, which will create.
This situation is not only created by absolute break down of Banking rules, as well idiotic policies for so many decades of people thinking money grow on the trees with gold coins.
That’s a very interesting observation.
>the EU will have to issue new euros and retire the old notes.
Comes under the category of Crowd Control always being their first concern. They are convinced that the crowd-US-can cause them more trouble than anything else.
Why? Greece will just force convert all assets (and debts) from Euros to Drachmas, then devalue the drachma significantly
The problem with this conversion is Greece’s to deal with. They’ll have to do it fast, and make it illegal to hold significant amounts of Euros - and be willing to enforce it.
Truth is, there’s probably no good way to do this and avoid bloodshed in Greece - those politically connected will get to keep assets in Euros, but debts in drachmas - then will buy assets, post devaluation at significantly deflated drachma valuations - and folks will notice and string them up.
Europeans might not appreciate their debts being converted to drachmas - and do things to get their money back - things that might lead to the new German Province of Crete or something like that.....
Well, now, those rumored “limitations” will certainly quell the run on the Greek banks.../s
Non euro countries like Montenegro don’t even use their own currency, they just use euros, swiss francs. Greece could drop out of the eurozone and use the drachma for public debts and allow the public to use whatever currency they want. This is the norm in the 3rd world (sorry, that’s where Greece is now). The government could control the money exchanges to some extent. Government workers, paid in drachmas, would also reduce costs because they could inflate the currency if needed. Because a loosely controlled monetary system would hinder income tax collection, a country like Greece might want to consider relying primarily on a consumption tax. That would allow the bureaucracy to focus on the retail outlets instead of the larger universe of taxpayers. High rates of income tax non-compliance, because of high tax rates, have supressed growth and revenue.
The big and the smart money left Greece quite a while back.
“The big and the smart money left Greece quite a while back.”
The really big money got the European bailout money....
Greece is so broke they can’t even consider Communism, they’re limited to fascism, or perhaps dictatorship.......
And if it is ATM’s they are concerned about, then even the small money is fixing to leave. Probably leaving now before the ATM’s get shut off.
It looks to me like it will hit our fianancial system before the summer is over or happen at any time very soon.
It’s time to finish preps and get cash in small bills and coins in the house.