Eurozone Breakup Begins In 2012 – CEBR

The Centre for Economics and Business Research (CEBR) has published a report, the likelihood of a euro breakup in the next decade has increased to 99 percent and that at least one country will leave the currency  block this year.

In its report the London-based think-tank wrote:

It now looks as though 2012 will be the year when the euro starts to break up. It is not a done deal yet, we are only forecasting a 60 percent probability — but our forecast is that by the end of the year at least one country (and probably more) will leave.

Greece and Italy, who are currently in the economic doldrums rank chief among those that the CEBR say will ‘more likely than not’ leave the Eurozone.

After a strong performance over the first 7 years of its existence the Eurozone has come under pressure due to the economic downturn which has affected growth. This was partly because most governments – and the European Central Bank – rarely looked at balance sheets during the boom.

With the crisis has come bailouts with strict measures attached them without the realisation that these restrictions in them would stunt growth and income.

With the fears that widespread insolvency in the bloc will push the rest of the Western world back into recession these are uncertain economic times for the Eurozone.

Makes you think twice about the SADC currency which has been the subject of a long and drawn-out conversation doesn’t it?