Is it legally possible that Greece ceases to be a member of the Eurozone without exiting the EU and without changing the treaties which establish the European Union and what consequences would this have for existing contracts and outstanding bonds? Can such an exit be done on a temporary basis?
We consider whether it is legally possible for Greece to temporarily cease to be a member of the Eurozone without a so-called “derogation”, i.e. whether it is possible under law to change the status of Greece for the time being into being a member state whose currency is not the Euro like Poland, Sweden, the Czech Republic or Hungary, and what consequences such “Grexit” would have for existing trade contracts and loans with counterparties in Greece and the government bonds issued by the Hellenic Republic.
Location