Thursday

22nd Feb 2018

Dutch PM: Eurozone needs exit clause

  • Rutte - the EU shouldn't be like 'Hotel California' (Photo: NewsPhoto!)

The EU should have legal mechanisms for countries to leave the euro, says Dutch Prime Minister Mark Rutte.

In a letter released on Thursday (31 January) responding to a question in the Dutch Parliament, Rutte and his finance minister Jeroen Dijsselbloem, said that his governing coalition had agreed that "it should be possible under mutual consideration to exit from the community arrangements (Schengen, eurozone, European Union)."

Thank you for reading EUobserver!

Subscribe now for a 30 day free trial.

  1. €150 per year
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

"This requires in the case of the eurozone and Schengen a treaty change as the current EU treaty does not foresee this possibility," it concluded.

The letter follows Rutte's intervention last week at the World Economic Forum in Davos, where he said that it "should be possible" for countries to leave the eurozone and indicated that certain EU policy areas should be repatriated to national governments.

"In terms of rules and legislation, it's a bit like 'Hotel California', you can check out but you can never leave," he said, adding that "you can never repatriate tasks to the national level."

The move comes a week after UK Prime Minister David Cameron gave a speech promising to renegotiate Britain's EU membership terms before holding an 'in/out' referendum.

The 2009 Lisbon Treaty introduced an exit clause into the EU treaties allowing countries to leave the bloc. Under Article 50 of the Treaty on European Union, "any Member State may decide to withdraw from the Union in accordance with its own constitutional requirements."

A country would be allowed to leave the EU after notifying the other countries and negotiating an agreement on its relations with the Union. If a new agreement could not be reached the country would be deemed to have left the EU two years after giving its notice.

No member state has ever left the EU, although Greenland left the EEC in 1985 after holding a referendum.

Under the terms of the treaties, all EU countries barring the UK and Denmark, are required to join the euro. However, there is no legal mechanism for a country to withdraw from the eurozone, despite speculation during the height of the sovereign debt crisis that Greece and possibly other countries might be forced to leave the single currency. There is also no mechanism for leaving the Schengen agreement which allows for passport-free travel.

A number of countries have also negotiated opt-outs or exemptions from individual policy areas, and the concept of "variable geometry", where some EU countries accelerate the process of integration, has become more widely used. Enhanced co-operation, where a group of countries can decide to legislate amongst themselves, has been used twice in the past year.

All EU countries, except for Italy and Spain, signed up to the recently agreed common European patent framework, while 11 countries were recently given the go-ahead to set up a financial transactions tax.

Dutch pro-Europe parties win heated election

The Netherland’s pro-European parties swept to victory on Wednesday in a closely watched election that had prompted concerns eurosceptics would increase their influence in future decision-making powers.

MPs demand Council become more transparent

Three Dutch MPs, on behalf of 26 national parliamentary chambers across the EU, are demanding more transparency. 'The Eurogroup is the most opaque of them all,' complained Dutch MP Omtzigt.

News in Brief

  1. Belgian PM to host 11 EU leaders ahead of summit
  2. Tusk all but rules out pan-EU candidates in 2019 elections
  3. Tusk: EU budget agreed before 2019 elections 'unrealistic'
  4. Commission fines car cartels €546m
  5. Juncker: 'nothing' wrong in Katainen meeting Barroso
  6. Juncker appoints new head of cabinet
  7. MEPs decide not to veto fossil fuel projects list
  8. Factory relocation risks drawing Vestager into Italian election

Stakeholders' Highlights

  1. Aid & Trade LondonJoin Thousands of Stakeholders of the Global Aid Industry at Aid & Trade London
  2. Macedonian Human Rights Movement Int.European Free Alliance Joins MHRMI to End the Anti-Macedonian Name Negotiations
  3. International Climate ShowSupporting Start-Ups & SMEs in the Energy Transition. 21 February in Brussels
  4. Mission of China to the EUChina-EU Tourism Year to Promote Business and Mutual Ties
  5. European Jewish CongressAt “An End to Antisemitism!” Conference, Dr. Kantor Calls for Ambitious Solutions
  6. UNESDAA Year Ago UNESDA Members Pledged to Reduce Added Sugars in Soft Drinks by 10%
  7. International Partnership for Human RightsUzbekistan: Investigate Torture of Journalist
  8. EPSUMovie Premiere: 'Up to The Last Drop' - 22 February, Brussels
  9. CESICESI@Noon on ‘Digitalisation & Future of Work: Social Protection For All?’ - March 7
  10. UNICEFExecutive Director's Committment to Tackling Sexual Exploitation and Abuse of Children
  11. Nordic Council of MinistersState of the Nordic Region 2018: Facts, Figures and Rankings of the 74 Regions
  12. Mission of China to the EUDigital Economy Shaping China's Future, Over 30% of GDP

Latest News

  1. UK seeks flexible transition length after Brexit
  2. Commission defence of Barroso meeting leaves 'discrepancies'
  3. MEPs bar WMD and killer robots from new EU arms fund
  4. Canete gets EU parliament pension while still commissioner
  5. Bank of Latvia sends deputy to ECB amid bribery probe
  6. We are not (yet) one people
  7. Intellectual property protection - the cure for Europe's ills
  8. Eastern states push back at rule of law conditions on funds