The start of the end of the EU!

So unless Greek savers miraculously decide to cease withdrawing cash from their accounts, Greek banks would find themselves in serious straits as soon as Monday - because the banks have become dependent on ELA, approved by the ECB but supplied by the Bank of Greece, to provide the cash to depositors who want their money back.

"We think the Greek government will have no choice but to announce a bank holiday on Monday, pending the introduction of capital controls," said a source.

Capital controls are restrictions on how much customers can withdraw from banks. Until now, the Greek government has been signalling that it does not want to introduce this restriction on the way banks can operate.

The expected decision by the ECB to terminate emergency lending to Greek banks stems from yesterday's decision by the eurogroup of finance ministers that there is no way now of preventing Greece tumbling out of the current bailout programme on Tuesday and also of defaulting on a €1.5bn (£1.1bn) due payment to the IMF on the same day.

Painful episode
So, with Greece no longer participating in a formal rescue programme, it is seen as impossible for the European Central Bank to continue extending credit to Greek banks - because the solvency of the Greek state would be in doubt, and the solvency of banks is so intimately linked to the solvency of the state.

The prospect of banks being forced to close tomorrow, or, if they're not, of a devastating run on them, represents the most painful episode in Greece's financial and economic crisis, since it blew up in 2009.

It is also the greatest perceived threat to the integrity of the eurozone since it was created in 1999.

If the Greek government refuses to shut the banks, the European Central Bank - as regulator of eurozone banks - could recommend that all branches of Greek banks outside Greece be closed to preserve cash.

But since Greek banks could get their hands on cash in branches outside the Greek mainland, closing overseas branches but not Greek branches would be seen as favouring Greek residents over customers in the rest of the world.

ECB to turn off emergency help for Greek banks - BBC News
Greece should never been allowed to enter the EU in the first place along with a few other countries, the debt is so large now they could never pay back the loan.

 

I also saw a link somewhere that there is unrest over the EU in Austria.

 

Greece has missed the deadline for a €1.6bn (£1.1bn) payment to the International Monetary Fund (IMF), hours after eurozone ministers refused to extend its bailout.

But the ministers said they would discuss a last-minute suggestion from Greece for a new bailout programme.

Greece is the first advanced country to fail to repay a loan to the IMF and is now formally in arrears.

There are fears that this could put Greece at risk of leaving the euro.

Greece debt crisis: IMF payment missed as bailout expires - BBC News

The referendum is on July 5th, reckon it will be a "get out vote" anyway we will see.

 

Greece, it seems like the government or some of them want out.

 

I'm not that familiar with the EU but I've read somewhere that they (the EU) controls the printing of money and interest rates for all of the Eurozone. Is that true? If so, how does that work with so many different countries in the mix? It seems to me it is only beneficial to the richer nations.