Eurozone collapse ‘starts this year’ says CEBR
Europe’s single currency is almost certain to disintegrate within the next decade, a leading think tank has predicted, with Greece and Italy potentially abandoning the euro this year.
By Rachel Cooper
02 Jan 2012
As the troubled euro marked its 10th anniversary this weekend, the Centre for Economics and Business Research (CEBR) said there was a 99pc chance that the currency would not survive the next 10 years.
“It now looks as though 2012 will be the year when the euro starts to break up,” the CEBR said.
The think tank added that Britain could well be in recession already, with growth likely to contract in the final quarter of 2011 and the first quarter of 2012.
But, it suggested that conditions could improve later in the year as inflation falls and the squeeze on real incomes eases.
“It is not a done deal yet – we are only forecasting a 60pc probability – but our forecast is that by the end of the year at least one country (and probably more) will leave”, said Douglas McWilliams, the CEBR’s chief executive.