The eurozone’s doomsday planning includes border controls and ATM limits

Reuters reports on some high-level discussions among EU finance officials on how to prevent bank runs and capital flight in the event that Greece bolts from the eurozone: As well as limiting cash withdrawals and imposing capital controls, they have discussed the possibility of suspending the Schengen agreement, which allows for visa-free travel among 26 ...

By , a former associate editor at Foreign Policy.

Reuters reports on some high-level discussions among EU finance officials on how to prevent bank runs and capital flight in the event that Greece bolts from the eurozone:

Reuters reports on some high-level discussions among EU finance officials on how to prevent bank runs and capital flight in the event that Greece bolts from the eurozone:

As well as limiting cash withdrawals and imposing capital controls, they have discussed the possibility of suspending the Schengen agreement, which allows for visa-free travel among 26 countries, including most of the European Union.

"Contingency planning is underway for a scenario under which Greece leaves," one of the sources, who has been involved in the conference calls, said. "Limited cash withdrawals from ATMs and limited movement of capital have been considered and analysed."

Another source confirmed the discussions, including that the suspension of Schengen was among the options raised.

European governments continue to nibble around the edge of suspending Schengen. At a meeting last week, EU home affairs ministers agreed on new rules that would allow passport-free travel for as long as two years if one country persistently allows illegal immigrants into the Schengen zone. Former French President Nicolas Sarkozy campaigned on the need for tighter border controls, but even without him on the scene the return of European borders seems a lot more likely these days. 

Joshua Keating was an associate editor at Foreign Policy. Twitter: @joshuakeating

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