News

EU officials discuss limiting ATM withdrawals

June 12, 2012

European finance officials have discussed limiting the size of ATM withdrawals, imposing border checks and introducing euro zone capital controls should Athens leave the euro.

According to a report at Irish Times, EU officials said they were simply preparing a contingency plan for the worst case scenario — not that they expected it to occur.  Political instability in Greece following a first round of elections in May (to be followed by a second round on June 17) made such planning the prudent course.

"Contingency planning is underway for a scenario under which Greece leaves," a source close to the discussions told the Irish Times. "Limited cash withdrawals from ATMs and limited movement of capital have been considered and analysed."

"The Bank of Greece is not aware of any such plans," a central bank spokesman in Athens told the Times in response to the source's comments.

The vast majority of Greeks - some surveys have indicated 75 to 80 per cent - like the euro and want to retain the currency, something Greek politicians are aware of and which may dissuade them from pushing the country too close to the brink.

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