The current economic problems in the Eurozone could affect our clients in a variety of ways, both direct and indirect. Our lawyers are providing expertise and advice on the possible legal impact and consequences of current problems in the Eurozone crisis on our clients' businesses and on transactions already entered into or being considered by our clients.
Questions that concern our clients include:
- What will happen if a member state leaves the Eurozone and adopts a new national currency instead?
- How might a member state leave the Eurozone?
- What legislation might be passed to deal with any such departure?
- How might a member state's departure from the euro affect my existing transaction?
- Will obligations which are expressed to be payable in euro be re-denominated into a new currency?
- What is the lex monetae principle?
- What can I do to protect myself from re-denomination risk as I plan for any new transactions?
- What rights would I have against a sovereign debtor/sovereign bond issuer who withdraws from the Eurozone?
- To what extent can I draft around some of the issues?
- What contingency plans should I be considering?
Answers to these questions can be found in our briefings on the Eurozone and euro disruption (see related publications).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.