Follow Newser on Twitter   Friend Newser on Facebook
Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Euro Breakdown Starts Now

CEBR gives Eurozone 99% failure rate over 10 years

By Neal Colgrass,  Newser Staff

Posted Jan 2, 2012 4:50 PM CST

(Newser) – Welcome to the year that the Eurozone begins its breakup and slides into certain doom—or so says one economic think tank in Europe. There is a 60% chance that "at least one country (and probably more) will leave" the euro in 2012, the head of the Centre for Economics and Business Research says. He adds that Greece's departure seems "pretty certain" and Italy will "more likely than not" follow suit, the Telegraph reports.

CEBR gives the euro currency a 99% chance of failing over the next 10 years, and warns that a global depression may follow. Along the way, the think tank says, French and German banking systems could seek bailouts and even be nationalized, the Financial Post reports. For now, European leaders are trying to give Spain and Italy time to gain control over their debt. German Chancellor Angela Merkel said yesterday that 2012 will be turbulent but that she will "do everything to strengthen the euro," Bloomberg reports. (Read about S&P's plan for the Eurozone.)

French President Nicolas Sarkozy, left, speaks with German Chancellor Angela Merkel during a round table session at an EU summit in Brussels on Friday, Dec. 9, 2011.
French President Nicolas Sarkozy, left, speaks with German Chancellor Angela Merkel during a round table session at an EU summit in Brussels on Friday, Dec. 9, 2011.   (AP Photo/Geert Vanden Wijngaert)
French President Nicolas Sarkozy, left, speaks with German Chancellor Angela Merkel during a round table session at an EU summit in Brussels on Friday, Dec. 9, 2011.
French President Nicolas Sarkozy, left, speaks with German Chancellor Angela Merkel during a round table session at an EU summit in Brussels on Friday, Dec. 9, 2011.   (AP Photo/Geert Vanden Wijngaert)
« Prev« Prev | Next »Next » Slideshow
My TakeCLICK BELOW TO VOTE
9%
14%
9%
7%
58%
3%
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Showing 3 of 22 comments
Observer
Jan 3, 2012 10:31 AM CST
China will buy each of these countries at rock bottom prices.
SilenceDogood
Jan 3, 2012 6:04 AM CST
Admittedly I believed for the longest time that Bernanke was a fool, in retrospect he has structured the only solution he could with the tools available to him. The Feds efforts to induce inflation and devalue the dollar are a pragmatic answer to the gross debt left by the last two administrations. The aftershock of this will be felt by everyone for decades to come, but at least it will not be an extinction event for the USA. The Euro has no ability to print the same volume of cash and follow the same path; the Germans fear of inflation will prevent this from occurring. So therefore the conservative fiscal policy of the EU will probably cause their collapse; an interesting epitaph for a union of socialist leaning nations.
boxcar
Jan 2, 2012 9:04 PM CST
In the modern "Bubble Economy" now that the "Housing bubble" has burst, next up is "Soverign Debt bubble" and that includes the US Soverign Debt bubble, only it won't burst- to wit: FED will continue to inflate USD, now on track to see runaway hyper-inflation ensue and its already started- To Wit: 2010 expenses went up 50% thru 2011- 2012 will see more of the same- anyone change their oil lately, or buy gas, or change a tire- all normal expenses are 50% higher w/in a single year- Do a 2yr quote on SLV an ETF which tracks value of 1oz silver. SLV was ~$18 in 2010 and now its 50% higher or $26 right on track- QED (Recent pull back of gold and silver is just that, its pulled back to where it ought to be) Gold was ~$1100 back in 2010, so now it s/b 50% higher is it? Gold was $1565 1st of year IF 50% inflation continues, next year Gold & Silver should be $2250 & $40 by years end if not more
Money • World

 
European Union • currency • Italy • euro • eurozone • greece debt

More Newser Stories

Euro About to Mark 10 Years

Greek Euro Exit May Cost $1T

EU Signs New Fiscal Treaty

Eurozone Set to Finalize Greece Bailout

Eurozone Economy Shrinks
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   BuzzFeed   |   Cracked   |   Timelines   |   Geek Sugar   |   Business Insider   |   HuffPost Entertainment