Euro will break up in next five years, economists say

 
Elizabeth Fournier
THE Eurozone is likely to be broken up within the next five years as southern European countries struggle to grow as part of the single currency, a new forecast from an economics consultancy will claim today.

Analysis from CEBR will show that without a euro break-up, growth in southern Europe – including Spain, Portugal and Greece – will be below 1.5 per cent in every year to 2015.

The latest forecasts came as European finance ministers debated the structure of a potential €120bn (£106bn) rescue paskage for Greece, which is widely expected to be the first country to exit the euro as it struggles to remain competitive amid stringent austerity reforms.

“Sooner or later both the Greek population and international creditors will tire of fighting a losing battle, leading to a break-up of the currency as Greece pulls out, probably followed by other countries,” said Douglas McWilliams, chief executive of CEBR.