Brussels: "No one can leave the euro"!
2011 09 14

By Leigh Phillips | EUObserver.com

The European Commission on Thursday (8 September) insisted that no member of the eurozone can leave the single currency after Germany and the Netherlands suggested publicly for the first time that such an extreme move should indeed be considered.

However, a European Central Bank legal study from 2009 argues that while voluntary withdrawal is legally not possible, expulsion remains "conceivable".

Responding to suggestions both from Germany and the Netherlands that countries that do not adhere to strict budget discipline be required to dump the euro, EU economy spokesman Amadeu Altafaj-Tardio on Thursday insisted that there is no debate happening at any level on whether Greece should be kicked out.

"There is no discussion whatsoever on such an eventuality," he told reporters in Brussels.

"Neither exit nor expulsion from the euro area is possible, according to the Lisbon treaty under which participation in the euro area is irrevocable," he added, referring to the European Union’s rule-book.

Earlier the same day, the Dutch prime minister, his economy, finance and foreign ministers outlined proposals for the creation of a specially appointed European commissioner who would be given the power to take over the economy of heavily indebted member states and ultimately kick a state out of the euro.

The same day, German finance minister Wolfgang Schaeuble told Deutschlandfunk radio that the Greek people must decide whether they want to stay members of the currency union.

"I understand that there is resistance among the Greek population to austerity measures," he said. "But in the end it is up to Greece as to whether it can fulfil the conditions that are necessary for a membership of the common currency."

Despite the commission’s insistence that withdrawal or expulsion from the euro is not legally possible, the Lisbon Treaty did for the first time introduce a clause describing exit from the European Union itself.

"Any member state may decide to withdraw from the Union in accordance with its own constitutional requirements," article 50 of the text says, going to describe the mechanics of such a move.

In 2009, the European Central Bank produced a legal working paper examining the legal issues surrounding euro and EU exit.

It concluded that euro exit is only possible upon exit from the union as a whole.

"A member state’s exit from European monetary union [EMU], without a parallel withdrawal from the EU would be legally impossible," the paper said regarding a country deciding to exit itself.

But there is a slight nuance to the question of whether a country can be kicked out against its will, noting that this is "next to impossible".

"A member state’s expulsion from the EU or EMU, would be legally next to impossible," the author wrote.

The paper goes on to say that expulsion, while "remote" is "still conceivable", however.


Read the full article at: euobserver.com




Related Articles
UBS: Euro Collapse Could Lead To Martial Law, Civil War
UBS Quantifies Costs Of Euro Break Up, Warns Of Collapse Of Banking System And Civil War
Is The End Of The Euro In Sight?
Bail Till You Fail: ’Euro collapse programmed’ (Video)
Think tank says Euro currency has 1-in-5 chance of lasting the decade
Nigel Farage: Euro Empire Collapsing, Bailout River Dry (Video)
Is this how the EU got a Yes to Lisbon from the Irish?
German minister calls for Lisbon treaty EU army
EU Lisbon Treaty comes into force
So as Ireland votes ’yes’ to Lisbon treaty, our 1000 years of history ends like this


Latest News from our Front Page

The War Against Whites Is Massively Incentivized
2014 08 28
The war on Whites is getting increasingly obvious, to the point that a very mainstream source, Congressman Mo Brooks, stated it and then refused to back down. This war is being carried on with a number of very potent weapons. At TOO we have stressed the moral onslaught which has inculcated guilt among legions of Whites for actions that have occurred ...
Study Offers Clues to Arctic Mystery: Paleo-Eskimos’ Abrupt Extinction
2014 08 28
Seven hundred years ago, the Dorset people disappeared from the Arctic. The last of the Paleo-Eskimos, the Dorset culture had dominated eastern Canada and Greenland for centuries, hunting seal and walrus through holes in the ice and practicing shamanistic rituals with ornate carvings and masks. Then, they promptly ceased to exist. Modern archaeologists have scoured troves of Arctic artifacts, searching for ...
Lois Lerner’s IRS Blackberry Destroyed After Federal Probe
2014 08 28
The IRS destroyed former Lois Lerner’s BlackBerry after Congress started probing whether the IRS was targeting conservative groups. Lerner was director of the Exempt Organizations Division of the IRS. A sworn declaration of Thomas Kane, a senior IRS lawyer, reveals that in June 2012, the IT department of the IRS wiped any sensitive or proprietary information from the BlackBerry in ...
White Marine Beaten by Black Mob in Michael Brown ‘Revenge’ Attack
2014 08 28
Police refuse to treat incident as a hate crime A white Marine was left in an induced coma after a group of black men brutally beat him as part of a revenge attack in response to the killing of 18-year-old Michael Brown in Ferguson, Missouri. The incident began at West Point Waffle House in Mississippi on Saturday morning at around 1am. With ...
Study: Exposure to Endocrine disrupting Chemicals Can Affect Future Generations
2014 08 28
Scientists have known that toxic effects of substances known as endocrine disrupting chemicals (EDCs), found in both natural and human-made materials, can pass from one generation to the next. New research shows that females with an ancestral exposure to EDC may show especially adverse reactions to stress. According to a new study by researchers from The University of Texas at Austin ...
More News »