Weak banking system and high levels of youth unemployment biggest risk to future of eurozone, poll finds

A struggling banking system and high levels of youth unemployment are the biggest threat to the future of the eurozone, according to a poll of economists by Reuters.

Almost half of respondents to the survey said the region’s banking system was the biggest weakness of its economy, with banks failing to lend leading to suppressed investor confidence.

A third of those polled, meanwhile, said that youth unemployment – standing at 23.8 per cent of under 25s in May, or 3.5m people – was the biggest threat.

A majority of the economists surveyed thought that the European Central Bank’s commitment to forward guidance, where interest rates are kept low for an extended period of time, represents a major shift in policy.