The Temptation to Exit the Eurozone in the Context of the Current Sovereign Debt Crisis

When a fire breaks out, we learn very quickly who is prepared to enter into that building in order to save lives and who runs away to avoid danger. The current sovereign debt crisis is precisely the kind of crisis that reveals true characters, that shows which states are prepared to enter the Eurozone and which are willing to give up the monetary union. This paper explores the possibility that some Member States of the Economic and Monetary Union (EMU) to leave the European monetary arrangement, as well as the potential consequences, both for those countries and for the EMU.