Capital Controls, Border Controls and Bank Freezes: European Union Prepares For Emergency
By: DK Matai
Jun 14, 2012
Bank runs in Greece are now in full swing. Withdrawals from Greek banks ahead of the weekend elections have spiked to more than 800 million euros per day. Is the Greek exit or “Grexit” now imminent? If so, what is the European Union going to do about it?
Capital Controls, Border Controls and Bank Freezes
Less than a week before the Greek elections, European finance officials have made public their discussions on potential economic sanctions on Greece, and other EU nations, in the event of a withdrawal or breakup within the European Union. Those sanctions would include capital controls, border controls when travelling between nations, and bank freezes limiting the size of withdrawals from ATM machines. European officials have also discussed suspending the Schengen agreement, which allows for visa-free travel amongst 26 countries, including most of the EU. The raison d’être of the European Union — open borders and free trade — is about to go down in the flames of a misplaced decades-long infatuation by the EU governing authorities with a single currency and its banker creators.