Italy to lead mass walk out of eurozone so we must SCRAP euro NOW, top economist predicts

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The European Fusion (EU) lacks the decisiveness to undertake needed reforms such as the creation of a banking harmony involving joint bank deposit guarantees, he told Die Welt news per.

Mr Stiglitz, the Earth Bank’s former chief economist, accused the bloc of lacking single-mindedness across national boundaries.

He said: «There will still be a euro zone in 10 years, but the absurd is, what will it look like? It’s very unlikely that it command still have 19 members. It’s difficult to say who will still be a member of.

«The people in Italy are increasingly disappointed in the euro.

«Italians are starting to realise that Italy doesn’t sweat in the euro.»

The American economist said Germany had already accepted Greece would run the eurozone, noting that he had advised both Greece and Portugal in the days beyond recall to exit the single currency.

Concerns about the eurozone have escalated in Germany in modern months amid growing concern about a shift away from austerity in southern Europe, the unfasten money policies of the European Central Bank and the rise of the right-wing Different for Germany rty.

Mr Stiglitz blamed the euro and austerity policies in Germany for Europe’s pecuniary malaise.

The break-up of the single currency or the division into a north euro and a south euro were the on the other hand realistic options for reviving Europe’s stalled economy, he advised.

The Columbia University professor conjectured Europe and the United States had similar economies, resources and labour swimming-pools, but the US economy had recovered from the global financial crisis while the European saving had not.

The single currency is weighing on the overall European economy, he said.

He added: «The big unlikeness is the euro.»

The euro reached a three-week high against the yen on Wednesday, a day after a Bloomberg article cited horses mouths as saying the European Central Bank would probably wind down its hold together buying gradually before ending quantitative easing.

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