Greece Considers Exit from Euro Zone - Maybe European Union Too

Donahue · 05-06-2011

The debt crisis in Greece has taken on a dramatic new twist. Sources with information about the government's actions have informed SPIEGEL ONLINE that Athens is considering withdrawing from the euro zone. The common currency area's finance ministers and representatives of the European Commission are holding a secret crisis meeting in Luxembourg on Friday night.

Athens Mulls Plans for New Currency: Greece Considers Exit from Euro Zone - SPIEGEL ONLINE - News - International

I didn't see this anywhere else but it's interesting. Obviously leaving both the Euro zone and potentially the European Union would be bad for Greece but it would also be horrendous for several EU countries, specifically Germany, which I imagine Greece is counting on to give them some leverage in negotiating their economic situation.

I imagine the Portuguese are preparing to similarly threaten the EU as I type.

**Occam's Razor** · 05-06-2011

Wouldn't a move like this ultimately help the EU more than hurt it?

It would be especially painful for them if the EU then decided to slap tariffs on all of their products as retribution for leaving.

**Voland** · 05-06-2011

This would be a much greater problem for Greece than for the EU. Its own new currency would take a nosedive while its debt would remain in Euros and therefore suddenly multiply while loosing european assistance. Total state bancrupty and ( more or less) exclusion from the international financial markets would be inevitable. Additionally experts are divided if leaving the Eurozone without leaving the EU is actually possible. And that is something that Greece certainly doesn´t want........

**Voland** · 05-06-2011

Greece and a number of EU governements have denied the media reports and claim speculators betting on Euro losses may be behind them. But a meeting in Luxembourg is apparently taking place.......