E.U. Finance Ministers Consider Harsh Protection Measurers If Greece Decides To Leave Euro
European finance ministers are considering strict and shocking measures to take if Greece decides to leave the Euro-zone. Among some of the ideas being seriously considered are limiting the size of withdrawals from ATM machines, imposing border checks and introducing euro zone capital controls for the remaining 16 nations.
As Greece nears its June 17th vote to pick a new leader and government or something else, the stability and credibility of the Euro has been dropping over fears of a currency collapse continent wide.
It was hoped that Spain's request for $125 billion euro's for a bailout would calm the markets and provide at least a few days of relative calm, but that apparently is not to be as markets have been volatile.
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 among 26 countries, including most of the European Union.
"Contingency planning is underway for a scenario under which Greece leaves," one of the sources according to Reuters, who has been involved in the conference calls, said. "Limited cash withdrawals from ATMs and limited movement of capital have been considered and analyzed."
One of the main reasons that such measures are being considered is that if Greece leaves the Euro, and the currency suffers a major devaluation or collapse, finance ministers want to stop people from making a run on banks who then cross into other more stable countries like Germany and try to deposit what is soon to be a worthless currency.
However, the vast majority of Greeks - some surveys have indicated 75 to 80 percent - like the euro and want to retain the currency, something Greek politicians are aware of and which may dissuade them from pushing the country too close to the brink.