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A leaving country could keep using the Euro while working on the transition back to their own currency. When the USSR collapsed - its former members continued t
by zirgs 4y ago
A leaving country could keep using the Euro while working on the transition back to their own currency. When the USSR collapsed - its former members continued to use Soviet rubles for some time until they transitioned to their own currencies.
So yeah - if a country really wanted to leave - a shared currency would not stop it.
- revelio 4y agoIt depends on how much cooperation the EU would extend (assume zero). For example paying other companies in euros requires transactions with the central bank. If the EU don't want you to leave they can just say, well, the moment you declare you're out we cut you off from the banking system and you can't settle your government debts anymore because you can't make euro transactions. For example.
- zirgs 4y agoYeah, but I don't think that they would do it. We already had Brexit and the UK was allowed to leave. Had they not colonised Northern Ireland - the leaving process would have been even easier.
- revelio 4y agoUK has its own currency and independent central bank, also it was a net payer into the EU budget so there was limited leverage.