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

Sand Pirates: ISIS Are America’s 21st Century Terrorist Privateers
2014 11 01
What is ISIS? If you believe govt and corporate propaganda, you still think that ISIS is a grassroots Islamic ideological movement ¨C and with no connection to intelligence agencies like America¡¯s CIA, Britain¡¯s MI6, Turkish (NATO) intelligence, Saudi intelligence, Israeli intelligence, or Pakistan¡¯s ISI. The reality of ISIS is something altogether different¡­ On closer inspection, these marauding paramilitary ISIS gangs are nothing ...
Ancient Stone Circles in Mideast Baffle Archaeologists
2014 11 01
Huge stone circles in the Middle East have been imaged from above, revealing details of structures that have been shrouded in mystery for decades. The Big Circle called J1 is about 390 meters (1,280 feet) in diameter, with an open area created by bulldozing in its interior. Credit: David L. Kennedy, copyright is retained by the Aerial Photographic Archive for Archaeology ...
Sweden Recognizes Palestinian State; Israel Upset
2014 10 31
Sweden on Thursday became the biggest Western European country to recognize a Palestinian state, prompting a strong protest from Israel, which swiftly withdrew its ambassador from Stockholm. The move by Sweden’s new left-leaning government reflects growing international impatience with Israel’s nearly half-century control of the West Bank, east Jerusalem and its blockade of the Gaza Strip. It also comes during increased ...
Fed-Backed Study: How to Brainwash Public into Fearing “Climate Change” Like Ebola
2014 10 31
$84K study seeks ways to make public fear "climate change and overpopulation" The National Science Foundation is funding a study to determine how to brainwash the public into fearing “climate change and overpopulation” as if they were Ebola. The NSF awarded an $84,000 grant to researchers at the State University of New York at Buffalo yesterday to figure out how to make ...
Brain decoder can eavesdrop on your inner voice
2014 10 31
As you read this, your neurons are firing – that brain activity can now be decoded to reveal the silent words in your head TALKING to yourself used to be a strictly private pastime. That’s no longer the case – researchers have eavesdropped on our internal monologue for the first time. The achievement is a step towards helping people who cannot ...
More News »