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EU-Sauce Source: Euro Zone To Impose ATM Withdrawals Limitations, Should Greece Exit Euro

One week before the June 17 elections, a new allegedly horror-scenario lands on the heads of troubled Greek voters. In an exclusive story, an EU-source told Reuters that EU finance officials have discussed the limitation of free capital and persons across the EU and Schengen (for Greeks), should Greece abandon the euro zone.

This is obvious and consequent action if the country exits the common currency club. One should notice that Greece would have to technically exit the EU first in order to abandon the EZ area as well.  But what do they care about or how much power will they have to impose capital control to a country that it won’t be their member anymore? What does a silly EU-source wants to achieve with a foolish claim that implies a direct threat to Greek voters? A silly anonymous source…

But why the limitation refers only to withdrawals from ATM machines and not from banks too, it’s another EU failure-proof  and sauce-spreading  miracle…

             Euro zone discussed capital controls if Greek exits euro: sources

“European finance officials have discussed limiting the size of withdrawals from ATM machines, imposing border checks and introducing euro zone capital controls as a worst-case scenario should Athens decide to leave the euro.

EU officials have told Reuters the ideas are part of a range of contingency plans. They emphasized that the discussions were merely about being prepared for any eventuality rather than planning for something they expect to happen – no one Reuters has spoken to expects Greece to leave the single currency area.

But with increased political uncertainty in Greece following the inconclusive election on May 6 and ahead of a second election on June 17, there is now an increased need to have contingencies in place, the EU sources said.

The discussions have taken place in conference calls over the past six weeks, as concerns have grown that a radical-left coalition, SYRIZA, may win the second election, increasing the risk that Greece could renege on its EU/IMF bailout and therefore move closer to abandoning the currency.

No decisions have been taken on the calls, but members of the Eurogroup Working Group, which consists of euro zone deputy finance ministers and heads of treasury departments, have discussed the options in some detail, the sources said.

Another source confirmed the discussions, including that the suspension of Schengen was among the options raised.” (full article REUTERS)

“”The Bank of Greece is not aware of any such plans,” a central bank spokesman in Athens told Reuters when asked about the sources’ comments.

I think the Greek FinMin should be aware of these plans, no?

PS why such a scenario pops-up again and indirectly urges people to rush to banks and withdraw their savings, I really do not understand. Unless some circles think, that besides the state also the Greek banks have to collapse…

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  1. I don’t really believe this is accidental. 6 days before an all important election (and not just for Greece), the dirty tricks bag will be fully opened. You watch, bully tactics, scaremongering,rumour spreading, false information, the works. But, the people off Greece should see through this. The EU made an enormous mistake over the weekend. Spain, very much in the same league as Greece in terms of det, unemployment etc, played exactly the same game of chicken as Tsipras and SYRIZA are playing. In short, “We’re bankrupt, but if you don’t give us a fair deal and a chance to get back on our feet, we can do a lot of damage to you too”. Spain, being a much bigger economy, played the same card, and the EU, knowing they could not win this game without going down themselves, gave in. 100 billion Euro to start with, at 3% (Greece pays 7%), and virtually no strings attached, the Greek people know exactly what strings are attached to the Greek bailout, and how much it is costing them. Forget the waffle about this being a different scenario, it’s not. Greece may not be as big as Spain, and may, at first glance, not be able to cause the damage Spain would have caused with a Sovereign default, but that is at first glance only. Reputable people, including the the US Treasury have admitted that Greece, if forced to leave the Euro and default, could do about 1,3 trillion € worth of damage to the combined EU. One of the direct consequences would be the almost immediate collapse of the ECB.
    I am fairly certain that little “leaks” like this one, by “anonymous sources”, are designed to try and get the Greeks to take their eye of the ball and stop them from realizing the bargaining power they hold. Especially now that Spain only went and proved Tsipras and SYRIZA right. The EU will loose a lot more than they care to admit if they don’t sit down and talk sense, soon. 6 Days in fact, that soon…

    • keeptalkinggreece

      I think such threats of Greeks are tired would rather backfire and strengthen Syriza. And Spain’s bailout may be without stirngs, but Rajoy already implements strict austerity, even before the ‘rescue’ package.

      • I do agree with you that the more they threaten, the more the Greek people will digg in their heels, and rightfully so. Even obama has now decided to start playing the finger wagging game, and is joined today by one of the big shots in Bank of America, claiming a Greek Euro exit is likely, if not an EU exit alltogether!
        Regarding Spain, the argument is not whether Rajoy is or is not implementing austerity measures, the point is, the EU has not, in any shape or firm, demanded or enforced it. They have also provided the loans at less than half the interest rate they demand of Greece, while at the same time making any possibility of paying it back impossible through the madness of austerity. In other words, they have, through their action in Spain, conceeded the SYRIZA point that there is another way. The SYRIZA program does not paint a road paved with gold, it does point to some serious reforms and painful measures. But it also, now confirmed by the EU, points out that things can be done differently…

        • keeptalkinggreece

          even ND & PASOK say they want some chances in the MoU. THIS MoU does not and cannot work. I think EU technocrats miss the Euro-forest by looking at each tree separately. The low interest rates for SPain open the Pandora’s box in Merkel’s hands: Irish, Portuguese would demand renegotiation, Greece will have to too (if ND or SYR gov), while Cyprus is about to negotiate a bailout and Italy does not seem to feel well either…

  2. This is a warning for Greece, the ATM stops working if you make the wrong choice.

  3. I don’t think its a threat, just a natural outcome of the circumstances. Of course for Greeks ITS A CONSPIRACY AGAINST US!!!! LOL