A Grexit is a case never experienced before, and there is not legal framework to deal with it
by Emanuele Bonini
The fact is nobody knows what to do. A financial crisis in the Eurozone never happened, and there are no procedures to follow. That's what Greece is about. No rules, no legal framework, nothing of all that. Even the treaties don't male clear what to do in case of financial insolvency of a member State. Leaving the Eurozone is an option everybody talks about, but there is not a trace on the treaties. Logically, it wouldn't be possible leaving the single currency without leaving the EU, but in practical terms there are not indications. All this means that neither the Eurogroup nor the European Union have the tools to deal with the Greek case. Maybe the ECB has, but we talk about instruments of monetary policy, and couldn't last for ever. In any case Europe is forced to give extemporary answers to the situation. It is not because of the EU itself, it is because the EU law doesn't foresees specific case like the one Europe is experiencing. Jitters and confusions are explained by that. We are in front of a situation which is totally new. This the «unexplored waters» some leaders talked about recently. A Grexit it something more a financial crisis. A Grexit is a phenomenon whose effects are totally unknown and, consequently, totally impossible to foresee. In somehow we can state that Europe is experiencing an historic moment, and there is no doubt about this. But the point is now Europe has to deal with a case never seen before. Temporary and extemporary measures will be the answer, and it doesn't sound good.
The president of the European Parliament was the first one and apparently the only one in Brussels to make clear that «the process under way is not foreseen by the Treaties», and as practical consequence of that «there is no legal solution». But, he added during the press conference held at the end of an extraordinary meeting of the conference of President, «in time of crisis we should be creative». This really means Europe has to invent something to avoid the worst scenario. The point is: what can be invented? And secondly, what can be found in the very short term? These are the questions.
The fact is nobody knows what to do. A financial crisis in the Eurozone never happened, and there are no procedures to follow. That's what Greece is about. No rules, no legal framework, nothing of all that. Even the treaties don't male clear what to do in case of financial insolvency of a member State. Leaving the Eurozone is an option everybody talks about, but there is not a trace on the treaties. Logically, it wouldn't be possible leaving the single currency without leaving the EU, but in practical terms there are not indications. All this means that neither the Eurogroup nor the European Union have the tools to deal with the Greek case. Maybe the ECB has, but we talk about instruments of monetary policy, and couldn't last for ever. In any case Europe is forced to give extemporary answers to the situation. It is not because of the EU itself, it is because the EU law doesn't foresees specific case like the one Europe is experiencing. Jitters and confusions are explained by that. We are in front of a situation which is totally new. This the «unexplored waters» some leaders talked about recently. A Grexit it something more a financial crisis. A Grexit is a phenomenon whose effects are totally unknown and, consequently, totally impossible to foresee. In somehow we can state that Europe is experiencing an historic moment, and there is no doubt about this. But the point is now Europe has to deal with a case never seen before. Temporary and extemporary measures will be the answer, and it doesn't sound good.
The president of the European Parliament was the first one and apparently the only one in Brussels to make clear that «the process under way is not foreseen by the Treaties», and as practical consequence of that «there is no legal solution». But, he added during the press conference held at the end of an extraordinary meeting of the conference of President, «in time of crisis we should be creative». This really means Europe has to invent something to avoid the worst scenario. The point is: what can be invented? And secondly, what can be found in the very short term? These are the questions.
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