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
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)
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(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.)

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