Part VI Monetary Unions and other Forms of Monetary Organization, 32 Withdrawal from the Eurozone

Subject(s):

Eurozone — Withdrawal from the Eurozone and currency — Monetary obligations — Monetary union — European Central Bank

This chapter addresses the process of a eurozone withdrawal. A withdrawal from the present monetary union arrangements within the eurozone would raise issues of a broader and deeper nature, partly because the monetary union was created by treaty between all EU Member States. As a result, a departure from the eurozone by one or more participating Member States would have consequences at two levels. First of all, it would have a clear impact on the position of the affected Member State under the EU Treaties. Secondly, it would create difficulties in the context of monetary obligations expressed in euros. The legal consequences which would flow from a withdrawal from the eurozone appear to depend in some measure upon the manner in which such withdrawal is achieved, i.e. whether it results from (a) amendments to the EU Treaties negotiated with other Member States, or (b) a unilateral decision by one or more participating Member States. The chapter differentiates between the two before considering the position of the withdrawing Member State, the European Union, and the European Central Bank.