Would You Bet on the Euro?
Times are tough for the Euro with many still speculating over the possibility of a Greek, Italian, Portuguese and Spanish exit from the currency.
Times are tough for the Euro with many still speculating over the possibility of a Greek, Italian, Portuguese and Spanish exit from the currency.
A new study suggests that if the four countries did leave the Euro it could cost the world economy up to €17 trillion.
However, don’t panic yet, this doesn’t seem very likely to happen this year, Paddy Power is giving odds of 9/1 on Spain and Portugal and 20/1 on Italy leaving by the end of the year.
The study was carried out by German consultancy Prognos for the Bertelsmann Foundation and they think that the cost to the economy would trigger a worldwide recession affecting every country from America to China and would cause “major strains on the social fabric and political stability” of the countries which left.
However, the study said that the consequences of a Greek exit are unknown.
Prognos said it would cost the world economy €674 billion between 2013 and 2020. Greece would lose €164 billion and Germany €73 billion.
In a note accompanying the report Bertelsmann Chairman Aart De Geus said that “In the current situation we have to make sure that the crisis in Europe does not turn into a wildfire.”
