Greek exit 'could lead to eurozone capital controls'

12 June 2012

Capital controls have been discussed as a possible method of protecting the eurozone should Greece have to leave the economic bloc.

That is according to European Union (EU) officials, who have told Reuters that a wide range of contingency plans have been put forward by policymakers eager to make sure the region is on a secure footing regardless of whether or not the struggling Mediterranean nation withdraws.

As well as capital controls, the idea of restricting the size of withdrawals from ATM machines along with the imposition of border checks in the eurozone has also been floated.

The sources stressed that such plans are only being made to provide the region with a safety net should the worst happen and not because EU officials believe a Greek exit is imminent.

"These are not political discussions, these are discussions among finance experts who need to be prepared for any eventuality," one insider stated.

By Tony Aynsley

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