Eurozone meltdown a threat as dangerous mix of global risks grow
Eurozone meltdown ‘cannot be discarded’ in dangerous mix of global risks, warns World Economic Forum
A dangerous mix of fragile economies and extreme weather has increased global risks, with a meltdown in the eurozone still a threat, the World Economic Forum said.
08 Jan 2013
In its Global Risks 2013 report, the WEF said eurozone instability will weigh on world prospects in coming year and the threat of “systemic financial failure cannot be completely discarded”.
The report warned that anti-austerity protests across the eurozone and the election of “rejectionist” governments this year could bring the crisis to a head, “potentially destabilising the global financial system”.
As the report came out, European Union data showed the unemployment rate across the troubled eurozone rose to a record 11.8pc in November, with those out of work now nudging 19m and youth unemployment at 24.4pc.
The survey of more than 1,000 experts and industry leaders fears that persistent global economic fragility is diverting attention of governments from longer-term solutions by limiting resources and investment.
Its more pessimistic outlook “reflects a loss of confidence in leadership from governments”, said Lee Howell, the WEF managing director responsible for the report.