Amongst the negotiations between Greece and the Eurozone leaders, there currently exists the possibility of Greece leaving the Eurozone for five years.
Does this imply Greece would have to use a different currency for only the next five years?
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$\begingroup$ That's a great question. The idea that a country would "temporarily" leave a currency union with a set reentry date is without precedent, no one has suggested how this would work in practice, and the idea is against EU law: reuters.com/article/2015/07/13/… $\endgroup$– dismalscienceCommented Jul 13, 2015 at 2:27
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1$\begingroup$ I find that this question is very speculative. It is about a suggestion that not all Eurozone members thought legally possible and I don't think a lot of details were released. My guess would be "yes" but I doubt that anyone can do more than guess. In the time since the Eurozone members agreed on something else so we will never know. $\endgroup$– GiskardCommented Jul 13, 2015 at 7:25
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1$\begingroup$ I voted to close this question as this is more a question of law and maybe political sciences than economics. $\endgroup$– The Almighty BobCommented Jul 13, 2015 at 8:44
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1$\begingroup$ I seriously doubt this was considered as a real possibility by anybody who understood anything about the monetary system. $\endgroup$– LumiCommented Jul 13, 2015 at 9:08
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$\begingroup$ Well, would they be motivated to stay with "us"? Err, would they join the BRICS? $\endgroup$– DioCommented Jul 14, 2015 at 5:44
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2 Answers
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There´s several possibilities, but they are all speculative.
My guess is that its not too hard to tell a story like this one: They could leave the monetary union, declare all local deposits and debts to be in drachmas and then move on, printing drachmas and taking them in for tax payments. Later on, when the economy is growing and the fiscal deficit has become manageable, they would apply to be part of the Eurozone again.
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This is discussed on Wikipedia at the Legal environment section of this article : Withrdawal from the Eurozone
