Greece Considers Exit from Euro Zone

from Der Spiegel:




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.

Greece's economic problems are massive, with protests against the government being held almost daily. Now Prime Minister George Papandreou apparently feels he has no other option: SPIEGEL ONLINE has obtained information from German government sources knowledgeable of the situation in Athens indicating that Papandreou's government is considering abandoning the euro and reintroducing its own currency.

Alarmed by Athens' intentions, the European Commission has called a crisis meeting in Luxembourg on Friday night. The meeting is taking place at Château de Senningen, a site used by the Luxembourg government for official meetings. In addition to Greece's possible exit from the currency union, a speedy restructuring of the country's debt also features on the agenda. One year after the Greek crisis broke out, the development represents a potentially existential turning point for the European monetary union -- regardless which variant is ultimately decided upon for dealing with Greece's massive troubles.

Given the tense situation, the meeting in Luxembourg has been declared highly confidential, with only the euro-zone finance ministers and senior staff members permitted to attend. Finance Minister Wolfgang Schäuble of Chancellor Angela Merkel's conservative Christian Democratic Union (CDU) and Jörg Asmussen, an influential state secretary in the Finance Ministry, are attending on Germany's behalf. .............(more)

The complete piece is at: http://www.spiegel.de/international/europe/0,1518,761201,00.html

I've always thought a 'world currency' would be a good thing

I guess it's just not ready for prime time

in Cities and the Wealth of Nations. That's a great book, by the way, if you haven't read it. Jacobs had a powerful and original intellect. It's a shame she isn't more widely read.

But going in as they are, with too much power given to the banks, its not going to work

Banks will just be able to rip people off in greater numbers

But add some Finance Regulation, and it might work

Perhaps twenty five more years, perhaps less. But the economic and social stresses put on the EU are eventually going to force it apart.

"The common currency area's finance ministers and representatives of the European Commission are holding a secret crisis meeting in Luxembourg on Friday night."
:spray::rofl: