The end of the single currency.

[davywavy]

Just a quick one. Cyprus has just passed capital controls into law, preventing people from taking their own Euros out of the country. Given that the purpose of a single currency is the free movement of capital, it can reasonably be said that the Cypriot Euro and the European Euro are now effectively different currencies.

Comments

[hairyears.livejournal.com]

You're nearly right.

Cyprus has just passed
capital controls into law, preventing ordinary people from taking their own Euros out of the
country.

Russian oligarchs and money launderers will experience no difficulty whatsoever.

[davywavy.livejournal.com]

In a black-humour sort of way, that just makes it even funnier.

Why the EU doesn't go the whole hog and build a wall along the border in order to protect the people from foreign influences I don't know.

[davywavy.livejournal.com]

I note from reuters that the London Branches of Cypriot banks were open all week with no transaction limits, and also international payments through paypal were available, once again with no limits.

Stroke of luck for the Russians there then, eh?