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EU draws up secret plans to kick Greece out of eurozone

10 April 2015 15:32 (UTC +04:00)

Baku - APA-Economics. Eurozone countries are formulating plans to boot Greece out of the single currency, as expectations grow that Athens may default on its debts next month.

A memo put together by the Finnish Finance Ministry, a close Berlin ally, talks of “very difficult political decisions” as the currency bloc braces itself for Greece’s cash flow to ossify, according to The Times.

By tacit approval of the other Eurozone countries a process is started that in effect results in Greece being expelled from the euro.

Athens also has debts to repay. It repaid a €450m (£326m) loan from the International Monetary Fund (IMF) yesterday, but has another, larger payment of €763m to pay on 12 May, and, unless it can secure the €7.2bn in funding from the EU by delivering reforms, is not expected to be able to pay up, although all hope is not lost.

There are several obstacles facing Greece. First its government must draw together a list of economic reforms, which must then be ratified by its EU creditors. Then it must legislate to lock in the agreed changes.