Greece to Quit the EU?

Steven Bobson, Europe & Americas Editor
May 09, 2011 /

In addition to fears about Greece entering into a debt restructuring last month, rumors are spreading that Greece will be parting ways with the European Union.

Der Spiegel, a German magazine, reported that a meeting about Greece readopting drachma, its old currency, took place last Friday, May 6, 2011.

Because of it, the euro consequently fell by more than a percent against the dollar to $1.44 on GMT 22:30.

But Greece denounced it and stated that the claim was not only completely untrue but also was written with incomprehensible flippancy despite repeated denials by the Greek government and fellow EU member states.

Greece also said that the articles are not only provocative but also highly irresponsible because they undermine their country and the rest of the EU’s efforts.

The ministers of the five Eurozone countries did have a meeting but it was not about Greece’s exit. Germany, France, Italy, Spain and Germany gathered in Luxembourg and discussed EU issues such as the financial situation of Portugal, Ireland and Greece.

In a statement to Reuters, Eurogroup Chairman Jean-Claude Juncker said that they have not been discussing Greece’s exit and that it is a stupid idea and that it is in no way an avenue they would take.

Juncker also said that they don’t want the euro area to explode without any reason.

In Greece’s point of view, the exit does not seem plausible because leaving the Euro a complicated step for them to take because they cannot easily afford to wake up the next day and simply say that they are not in the euro anymore.

Greece is the 12th country to join the EU after it left its former currency, drachma, in 2002.

 

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