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Monday 11 June 2012

EU-Sauce Source: Euro Zone To Impose ATM Withdrawals Limitations, Should Greece Exit Euro



One week before the June 17 elections, a new allegedly horror-scenario lands on the heads of troubled Greek voters. In an exclusive story, an EU-source told Reuters that EU finance officials have discussed the limitation of free capital and persons across the EU and Schengen (for Greeks), should Greece abandon the euro zone.
This is obvious and consequent action if the country exits the common currency club. One should notice that Greece would have to technically exit the EU first in order to abandon the EZ area as well.  But what do they care about or how much power will they have to impose capital control to a country that it won’t be their member anymore? What does a silly EU-source wants to achieve with a foolish claim that implies a direct threat to Greek voters? A silly anonymous source…
But why the limitation refers only to withdrawals from ATM machines and not from banks too, it’s another EU failure-proof  and sauce-spreading  miracle…

             Euro zone discussed capital controls if Greek exits euro: sources
“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.
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.
Another source confirmed the discussions, including that the suspension of Schengen was among the options raised.” (full article REUTERS)
“”The Bank of Greece is not aware of any such plans,” a central bank spokesman in Athens told Reuters when asked about the sources’ comments.
I think the Greek FinMin should be aware of these plans, no?
PS why such a scenario pops-up again and indirectly urges people to rush to banks and withdraw their savings, I really do not understand. Unless some circles think, that besides the state also the Greek banks have to collapse…

1 comment:

  1. The advantage of having an ATM is just you can withdraw it anytime you want.

    ReplyDelete