Preparing for Grexit

What happens if Greece pulls out of the eurozone? PM Petr Nečas announced last week that his government and the CNB have prepared steps for responding to such an eventuality, but he declined to elaborate. An orderly withdrawal by Greece might not mean anything of significance to Czechs, but some analysts say a messy withdrawal could lead to bank runs across Europe. Czech politicians and central bankers will no doubt come forth with assurances that Czech banks are sound and that the crown doesn't risk catching a euro-denominated flu. It's probably true this time; Europe's demise is probably not yet upon us. But it doesn't mean that Czech depositors won't face some temporary inconveniences, such as withdrawal limits, if things get worse before returning to a more normal state of perpetual crisis. So holding a little more cash than usual is probably a reasonable response to Nečas's remark.