Friday, December 31, 2010

U.K. Think Tank Sees Only 20% Chance of Survival for Euro

In a list of top 10 predictions for 2011, the Center for Economics and Business Research , a U.K.-based think-tank, gave the euro a slim one-in-five chance of surving, reports WSJ.

The organization sees further debt problems in Spain and Italy as the catalyst for a new downturn.

Douglas McWilliams, the CEBR’s chief executive said in a statement that the specter of a full-fledged break-up can’t be completely ruled out. “I suspect that what will break up the euro will be the failure of most of the countries to take the tough medicine necessary to make their economies competitive over the longer term,” he said.

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