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Closed banks and capital controls towards Grexit

16 June 2015 / 13:06:14  GRReporter
2179 reads

The online edition of the largest German national daily Süddeutsche Zeitung has published a shocking scenario, referring to sources from Berlin and Brussels.

The newspaper presents the next steps in the negotiations that are currently at an impasse.

In particular, the publication provides for the following:

  • Waiting position until the meeting of the Eurogroup on Thursday.
  • If no agreement is reached, an emergency summit to find a political solution will take place on Friday.
  • If even it does not find "the golden mean", the leaders will ask Greece to vote on a special law on capital controls. Banks will remain closed for several days and the law in question must enter into force when they open.
  • If Greece refuses, then it will be isolated from the financial system in Europe, which will most probably lead to Grexit.

 

According to the foreign press, replying to a question associated with the publication in Süddeutsche Zeitung a representative of the German government said he could not confirm that the European Union was planning to impose capital controls.

Simultaneously, as the Guardian states, a senior Greek source hastened to refute the publication.

Extension until March, under the best-case scenario

Meanwhile, according to Mega TV, Berlin has presented the prospect of extending the bailout as the "best-case scenario" since talks have reached a critical point.

The German government believes that it will be very difficult to come to a decision at the meeting of the Eurogroup without an agreement at the technical level.

Therefore, all hopes are pinned on the summit at which the leaders will try to reach a political solution, the core proposal being to extend the bailout until March and the new programme that amounts to 35 billion euro until 2018.

 

Tags: Sueddeutsche ZeitungPublicationsCapital controlsGrexitShocking scenario
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