Monday, 11 January 2010


[post under construction]

How does a country go about leaving the Eurozone? Do you have to leave the EU in order to do it? Does it make any difference whether you jump or are pushed?

First, I think it's important to note, partly in response to George MUPPET Romaios, that the German Bundestag was first to put the word out that Greece cannot be kicked out the EU even if we become insolvent. Although we can have some of our rights as an EU member revoked for breaking the rules.

However, a recent working paper from one of the legal minds over at the European Central Bank (a Greek Cypriot too by the looks of it) also says that we can't leave the EMU without leaving the EU, and in fact, we can't do that at all unless we do it unilaterally - an endeavour that will be next to impossible in legal terms in the sense that it may not free us of our obligations to our former partners.

The law geek says:

"negotiated withdrawal from the EU would not be legally impossible even prior to the ratification of the Lisbon Treaty, and that unilateral withdrawal would undoubtedly be legally controversial; that, while permissible, a recently enacted exit clause is, prima facie, not in harmony with the rationale of the European unification project and is otherwise problematic, mainly from a legal perspective; that a Member State’s exit from EMU, without a parallel withdrawal from the EU, would be legally inconceivable; and that, while perhaps feasible through indirect means, a Member State’s expulsion from the EU or EMU, would be legally next to impossible. This paper concludes with a reminder that while, institutionally, a Member State’s membership of the euro area would not survive the discontinuation of its membership of the EU, the same need not be true of the former Member State’s use of the euro."
The lesson here seems to be that Greece will almost certainly come out of the mess it's in an EU and EMU member.

No comments:

Post a Comment

Please remember that I am not notified of any comments and will not respond via comments.

Try to keep your criticism constructive and if you don't like something, do tell me how to fix it. If I use any of your suggestions, you will be duly credited.

Although I'm happy to entertain criticism of myself in the comments section, I will not tolerate hate speech. You will be given a written warning and after that I will delete further offending comments.

I will also delete any comments that are clearly randomly generated by third parties for their own promotion.

Occasionally, your comments may land in the spam box, which may cause them to appear with a slight delay as I have to approve them myself.

Thanks in advance for your kind words... and your trolling, if you are so inclined.