Brussels, 03/11/2011 (Agence Europe) - Although the Greek prime minister withdrew the referendum idea under pressure from his partners, the question of whether it will remain in the euro is now being openly discussed in Athens and among some of its creditor nations.
Under Article 50 of the Lisbon Treaty, “any member state may decide to withdraw from the Union in accordance with its own constitutional requirements. A member state which decides to withdraw shall notify the European Council of its intention. In the light of the guidelines provided by the European Council, the Union shall negotiate and conclude an agreement with that state, setting out the arrangements for its withdrawal, taking account of the framework for its future relationship with the Union. That agreement shall be negotiated in accordance with Article 218(3) of the Treaty on the Functioning of the European Union. It shall be concluded on behalf of the Union by the Council, acting by a qualified majority, after obtaining the consent of the European Parliament.”
Although voluntary withdrawal from the EU is covered by the Treaties, there is no mention of withdrawing from the single currency. The rules allow for Greece to leave the EU if it wants, but do not cover leaving the euro. The reason is because in the minds of the people who wrote the Maastricht Treaty, joining the euro was a one-way process. It is compulsory for any new member state to join the euro as soon as the economic conditions set out in the Treaty have been met, unless there is a special opt-out (like for Denmark and the United Kingdom).
It does not look possible, legally speaking, to leave the euro and remain within the European Union, but it would be possible to change the Treaty to enable Greece to return to the drachma but stay in the EU club. Such a change could be made in a Protocol annexed to the Treaties proper to grant Greece a derogation from the requirement to be in the euro.
Officially, the question is not on the agenda, and a European Commission spokesperson said on Thursday that Greece's place was in the eurozone, where the necessary instruments are in place and agreements have been reached to ensure it can remain in the eurozone. The prime minister of Luxembourg, Jean-Claude Juncker, who heads the Eurogroup, rocked the boat by commenting that he was absolutely convinced that everything should be done to ensure that none of the eurozone members leaves the single currency, but if the Greeks wanted to leave (which he considers an error), then it would not be possible to make them happy by keeping them in the euro against their will. (LC/transl.fl)