June 21, 2011
When the blueprint for the euro was drawn up, leaving was not an option: there were no circumstances under which any member would ever want to leave and therefore no exit route. But the once unthinkable now looks entirely possible.
Any plan to enable Greece to pull out of the eurozone would need to include a way to nationalise its banks, new restrictions to stop money and assets leaving the country – which could include limits on cash withdrawals from hole-in-the-wall machines – and a restructuring of the vast Greek debt pile.
According to Raoul Ruparel, economic analyst at Open Europe, a thinktank which calls for reform of the European Union, no consideration is being given by politicians to such an eventuality, but he believes a plan should be set out to allow an orderly exit.
"One of the only ways to exit would be through a disorderly default on the debt where the country couldn't make a payment," said Ruparel. "The banking sector would have to be nationalised as the banks would go under if Greece were to leave to the eurozone."
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