With European solidarity impaled on the coronavirus epidemic, talk of Frexit is surfacing again. But how could Frexit be organised? Like Britain, France would activate Article 50 of the Lisbon Treaty to begin the process of leaving the European Union. But how does one leave the single currency? Brussels, which existentially regulates for everything, does not say and the 3000 page Lisbon Treaty is silent on the subject. So how could France move to ‘eurexit’ and what would be the financial consequences?
A starting point could involve reverse engineering the Lisbon Treaty’s monetary articles to begin negotiations with Brussels on exiting the euro. While the 144-article long Title VIII of the Treaty devoted to monetary policy makes no reference to a state being able to leave the single currency, it does contain five substantial articles setting out: ‘Transitional Provisions’ for member states to join the single currency.
Article 139 in effect sets out the rights of those member states which do not yet meet the euro membership criteria, but who aspire to.
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