When was Greece first kicked out of a European Monetary Union ?


Greece first kicked out of a European Monetary Union in 1908..

The Latin Monetary Union (LMU) was established in 1865 and continued until 1927. The Monetary Union was formed by France, Belgium, Italy, and Switzerland for a common currency pegging between them.

Greece joined the Union on April 10, 1867.

Greece was expelled from the Latin Monetary Union in 1908, following one financial crisis after another, and running out of finance, and borrowings, to the point of being declared bankrupt at one stage.

The Union formally ended 19 years later, in 1927, although World War 1 was seen as the real ending of the First Monetary Union in 1914.

Britain, although asked to join the Union, refused.

www.bbc.com/news/magazine-17140379

Read more at: Greece’s First ‘Grexit’ | OZY

Greece stumbled through one currant crisis to another. The state was heavily indebted, and any money it did have was poured into an army that had a top-heavy hierarchy full of expensive generals and officers.

In 1893, President Charilaos Trikoupis declared, “Regretfully, we are bankrupt.” He halted payments to Greece’s creditors — Germany, France and Great Britain — although foreign financial oversight along with debt restructuring and interest rate reduction was the norm in Athens back then. Greece’s bankruptcy “destroyed the country’s reputation as a borrower” for a long time to come,

 


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