Thread: The EURO collapses... What if?

The euro collapses - what if? - Channel 4 News

Following the downgrading of Belgium's credit rating, the Foreign Office is advising its embassies to prepare contingency plans for the possibility of the collapse of the euro.

You would expect the Foreign Office mandarins to be prepared for every eventuality - but here's a doomsday scenario which might just happen.

British embassies are now taking active steps to prepare for the possibility of the euro collapsing - something that's no longer as inconceivable as it once was.

The Foreign Office is preparing contingency plans to help expats from the Costa del Sol and the Algarve who could be stranded without cash - or caught up in riots and civil unrest.

Huh???

Well they're obviously over-reacting, and maybe they've been looking at riots this year in Greece and also in the UK especially in London. I personally still don't think you'll see the equivalent of Hackney or Croydon in Spain, but we may well see more politically inspired demos in big cities like Barcelona or Madrid. Having said that, I'd sooner the govt. made contingency plans just in case, rather than be caught totally unawares if things got a lot worse. The danger is not that hotel staff in the CDS turn against tourists (that is totally illogical) but if banking systems froze for a time, which is likely if Spain suddenly left the Euro, then a lot of Brit holidaymakers could be stranded with no financial means of support. Making a contingency plan to arrange transport seems quite sensible imo.

Originally Posted by DBMarcos

Well they're obviously over-reacting

Obviously?

Over-reacting?

Here's an update:

A financial Dunkirk: Britain draws up plans to rescue expats if Spain and Portugal are hit by financial oblivion

Evacuation plans for British expats stranded in Spain and Portugal if their banking systems collapse are being drawn up by the Foreign Office.

The contingency plans are being put in place to help thousands of Britons if they were unable to get to their money in the event of a catastrophic banking collapse in two of the most vulnerable eurozone economies.

Around one million British expats live in Spain, particularly around Marbella and Malaga, and some 50,000 in Portugal.

The Foreign Office is concerned that those who have invested savings in their adopted countries would face losing their homes if banks called in loans and they were unable to access money.

Last week ratings agency Standard & Poor's downgraded 10 Spanish banks, including Banco Popular.

Among options being considered for a 'nightmare scenario' include sending planes, ships and coaches to evacuate expats - some through Gibraltar.

Small loans could also be made available to stranded Britons and pressure would be exerted on the Spanish and Portuguese governments to allow access to funds to pay for everyday essentials.

Both countries have a deposit guarantee, like the UK, which means depositors are covered for up to €100,000.
But in the event of a collapse, most banks would limit withdrawals.

Many expats have retired to the south of Spain on fixed incomes, having used their savings to buy villas and apartments.

A senior Foreign Office source told The Sunday Times: The nuclear scenario would be having thousands of Brits stranded at the airports in Spain and Portugal with no way to get money from the cash dispenser and no way to get home.

'Who would be blamed for this? The Foreign Office.

'We are looking at how we can help evacuate them if the banks in Spain and Portugal collapse, getting people cash, things like that, sending planes.'

Expats could face losing their villas and apartments because they were unable to afford mortgage payments or withdraw enough cash as banks tried to stop money leaving the country.

They could also lose savings if banks in either country collapsed.

Jeremy Cook, chief economist at World First - foreign currency exchange specialists - told the newspaper: 'Countries have individual safeguards on deposits but for people with large deposits in a bank it would be difficult to say whether all that money would be protected.'

It's certainly a mighty worrying thought........

• Life savings lost in houses worth virtually nothing,
• Controls on cash leaving the country further restricting any thought of moving back to the UK,
• Increased crime,
• Riots and looting.

Let's hope it is an over-reactive government.

Yes it's mischief making by the gutter press (including some papers that should know better)

The British Embassy has had to deny it.

British Embassy in Madrid denies expat evacuation plan

“There is no Spain (or Portugal) contingency plan for a euro-based evacuation, nor do we have any intention of preparing one. It is fanciful to imagine that a major evacuation of British nationals would either be necessary or feasible.”

The weird thing is, if Spain did leave the Euro, they would devalue and UK expats would suddenly find their pension payments and UK savings worth a lot more. So why all this talk of evacuation?

Believe me, if things went totally bad and all the Eurozone collapsed, the UK would go with it. It's be the likes of me in London trying to flee the rioting mobs who'd be in danger.