“(MoneyWatch) As anti-EU sentiment intensifies across Europe, nations and financial institutions are making plans about what to do if the already frayed union shrinks, or even splinters.
France and Germany this week are presenting a plan to ensure that governments keep the right to impose national border controls within the EU. In another sign that local officials are preparing for what could be convulsive changes within the union, the European Investment Bank is now requiring that all contracts with Greek entities include repayment guarantees in case Greece leaves the EU. It also intends to do this with other financially troubled nations.
The EIB, which is funded by the 27 EU members, earlier this month began inserting so-called “drachma clauses” in all contracts with Greek borrowers. These clauses allow for renegotiation of contracts should Greece leave the eurozone or should the common currency area break up. They also place the agreements under English — not Greek — law in case of any problems with the payback process.”
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