Europe braces for Greek exit

Legal advice on capital controls, including limits on withdrawals from Greek bank accounts, and emergency border restrictions, has been provided by the European Commission to eurozone governments drawing up plans for Greece to leave the euro.

Commission officials confirmed on Tuesday that "these elements" of contingency planning for a Greek exit from the single currency have been discussed by the "euro working group" (EWG) of Treasury officials and junior finance ministers over the last six weeks.

"There are indeed discussions, and we are asked to clarify what is foreseen in the EU treaties," said a Commission spokesman. "Some people are working on scenarios. We are providing information on EU law as guardian of the treaties."

Greek newspaper Ekathimerini reported bank withdrawals in Greece have hit a rate of up to €500m per day, a level expected to accelerate in the aftermath of Greek elections on Sunday.

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