Working Paper on the legal questions of replacing or supplementing the euro in the euro area

The recent debate about the solvency of the banking system in Italy and the exit of the United Kingdom from the European Union opened the eyes for a more informed view on the legal problems related to the procedures and differences between the exit from the European Union and the introduction of a new currency. In his Working Paper, Prof. Helmut Siekmann analyzes whether it is legally possible for a EU member state to leave the euro area or to be excluded from the euro area coming to the conclusion that it is highly questionable to exclude a member state from the EU or Monetary Union.

According to Siekmann, it is neither legally possible for a member state whose currency is the euro to introduce an new currency instead or parallel to the euro or to obtain a permission from the organs of the EU or the member states to withdraw from the euro area or to implement a parallel currency.

IMFS Working Paper No. 109
Helmut Siekmann
"Replacing or Supplementing the Euro in Member States whose Currency is the Euro"

(PDF, 416 KB)