The Financial Times uncover Europe’s “Plan Z” for Greece

The Financial Times uncover Europe’s “Plan Z” for Greece

Report details the dramatic behind-the-scenes events and meetings that almost led Greece to abandon the euro

Thursday, May 15, 2014

The Financial Times have published a report by Peter Spiegel on the infamous “Plan Z” composed by European Commission, IMF and ECB officers and the events in 2012 almost resulted in a Grexit.

In his report, Spiegel explained that the “Plan Z” was meant to prepare Greece for the probability of being forced to leave the Eurozone, as they fear a Grexit would cause bank runs in other countries and further perpetuate the crisis. Spiegel notes that in 2012 the prospect of a SYRIZA victory in the elections prompted Europeans to prepare an exit plan, as they feared the anti-bailout rhetoric would be catastrophic.

According to the FT’s report, the first public mention of a mention came at the November 2011 G20 summit in Cannes, where German Chancellor Angela Merkel and French President Nicolas Sarkozy aired the idea of a voluntary Greek exit from the euro, catching many other Europeans by surprise.

Spiegel reveals that work for Plan Z began in January 2012 and was overseen by Jörg Asmussen, Thomas Wieser, Marco Butti and Poul Thomsen. According to the report, the plans were kept confidential and no documents were compiled or emails exchanged to ensure utmost secrecy and discretion. The plan involved drastic actions, such as shutting down ATMs and reinstating border control to prevent capital from being exported, however considerations for printing a new drachma were scrapped for practical reasons.

At the Los Cabos G20 summit the European leaders held a teleconference and decided to support Greece on condition that the Greek government agrees to fulfill its bailout commitments. The journalist goes on to explain behind-the-scenes details regarding the negotiations between the European leaders, who were concerned that the problems in Greece would spread.

The election of Antonis Samaras as Prime Minister in 2012 calmed the Europeans, who had feared that a SYRIZA government would derail all of their efforts. After Mr. Samaras was elected though, he met with Manuel Barroso, who urged the Greek PM to focus on implementing the bailout requirements Greece had agreed to, rather than demand renegotiation. A PASOK officer argued that Samaras “did the most U-turn in history”.

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  • theunhivedmind

    Political scientists of the Greek election: “Worst case scenario is very dark

    Published: 15-01-2015 16:02

    GREECE Battle of Greece begins next week. If extreme left SYRIZA as expected wins await an economic and legal challenge to the EU and in the worst cases can lead to military action and the coup d’état. – Worst case scenario here is very dark.

    In Greece is preparing for new elections. A new election to be won by SYRIZA, a party consisting of everything from Maoists to revolutionary socialists. If this happens, there is a possibility that Greece simply leave the euro. Media around the world have called such a decision for a Grexit.

    An election victory for SYRIZA and party leader Alexis Tsipras is not the same as a direct exit. These are mainly the reduction of debt and revised loan terms with the rest of the European Union as the radical Left hopes to accomplish. In a press release on SYRIZA website writes that if an exit is implemented, it is completely seated Prime Minister Antonis Samaras wrong.

    A couple of weeks ago reported the Hamburg-based Der Spiegel, the German government sees Greece without the euro is inevitable if SYRIZA is the winner on election night. Unlike the recent crisis is now the euro States more prepared. But how to act, whether Greece leaves the union or not, can only speculate.

    – You are more ready for the storm, but it’ll be an edited storm, says Olof Larsson, PhD student at the Department of Political Science at University of Gothenburg, the News Today.

    Top secret plane Z can lead to coup

    During a press conference in Brussels, the European Commission’s spokeswoman on economic issues, Annika Breidthardt, however, argues that if the man once stepped into the euro zone can never leave it. In support of the statement she has the Lisbon Treaty and its Article 140 § third

    The European legislation on the currency union and states obligation to remain in it has never been tested, and it is true that German Chancellor Angela Merkel is ready to let the Greeks leave the EMU, it is not certain that Greece would be prevented in case of a national decision to withdraw. One exception that allows Greece to return to their old currency would then be negotiated. If an agreement can not be reached, however thrown the remaining euro area countries into a reality where they are virtually imprisoned in the euro zone.

    According to Olof Larsson statement, however, of little importance compared with, for example, the German Government argued consider the matter. He believes that Annika Breidthardts affidavit should be seen in a political context, in which the Commission might wish to put pressure on Greece in the forthcoming elections. The same applies to the speculation that Germany fears Grexit due to the stronger euro such an act could culminate in – which in turn would impair the German export opportunities.

    – It has bigger problems to think about right now, says Olof Larsson.

    Already during the last crisis planned eurozone members how to manage a Greek case. Together with the IMF and the European Commission worked to produce the top-secret Plan Z. According to the British Financial Times joined the plan, among other things, at the close of ATMs and reintroduce border controls for both people and capital.

    – Worst case scenario here is very dark, there has been speculation in the military on the streets and airports, says Olof Larsson News Today.

    According to the Financial Times was the then Greek Prime Minister Papandreou worried that Grexits after the game could lead to that he simply could end up in a coup. This, along with the tide of legal and financial problems that could arise in the aftermath of a reinstated drachme, would have disastrous spill not only within the European Union, but throughout the world.

    These fears may be thought to act as an explanation for the European Commission’s strange statements. Not only Annika Breidthardt, but also the Commission’s own president, Jean-Claude Juncker, has officially commented on the Greek policy and endorsed the Greek presidential candidate Dimas.

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