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

Norway Joins the Race to Develop Killer Robots
2014 10 24
Norway is a large exporter of weapons, which makes the resolution of the debate about creating killer robots an important issue for everyone.  One could debate the overall merits or failings of robotic systems, but an area that clearly has become a point for concern on all sides is the emergence of "killer robots." According to robotics pioneer, David Hanson, ...
Gene That Once Aided Survival in the Arctic Found to Have Negative Impact on Health Today
2014 10 23
In individuals living in the Arctic, researchers have discovered a gene variant that arose thousands of years ago and most likely provided an evolutionary advantage for processing high-fat diets or for surviving in a cold environment; however, the variant also seems to increase the risk of hypoglycemia, or low blood sugar, and infant mortality in today’s northern populations. {snip} “Our work ...
The Ebola hoax: questions, answers, and the false belief in the “One It”
2014 10 23
“The Reality Manufacturing Company doesn’t just sell ‘fake paintings’ that are easy to spot. No. They also sell images that are geared to mesh with people’s deeply held instincts and thereby produce rigid false beliefs. People are sure that if they gave up such beliefs, their world would fall apart and blow away in the wind.” ...
New Controversial Theory Suggests "Hobbits" Were Not Human - Who Were These Mysterious Beings?
2014 10 23
The origin of the Hobbit species remains a challenging subject to scientists. The Hobbit’s discovery confirmed the view that the Earth was once populated by many species of human, but new research the Hobbit’s were not human at all! So, who were these mysterious beings? Where did they come from? The idea that our species, Homo sapiens, was the only species of human on ...
Right into enemy hands? ISIS shows off new weapons allegedly airdropped by US (VIDEO)
2014 10 23
Islamic State has published a new video in which a jihadist shows off brand-new American hardware, which was purportedly intended for the Kurds they are fighting in the Syrian border town of Kobani. The undated video, posted by the unofficial IS mouthpiece “a3maq news”, sees a jihadist showing several boxes of munitions with English-language markings, with a parachute spread out on ...
More News »