Tigue: Euro is at risk of falling apart
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Foreign & Colonial Investment Trust fund manager Jeremy Tigue says that the EU’s continued attempts to rescue smaller European countries on a reactive basis could place the future of the Euro at risk.
Tigue says that the Euro may fall apart if the EU does not work on a proactive basis and if they do not look to address these issues by 2011 we may end up with an EU consisting of just Germany, Austria, the Netherlands, Belgium, Luxemburg and Denmark.
He says that we may even see a situation where Germany feels it has no option but to leave the Euro.
He says: “Both of these outcomes are unthinkable in terms of political consequences, not to mention the impact on the European and UK markets.”
Tigue also says it is inevitable that more countries may need assistance in the future as the IMF and EU have not resolved the underlying issues around solvency.
He says: “ For this reason, I believe the problems will simply move from one country to the next, starting with Portugal and then probably Spain and Italy. Whether this is next year or in 2012, in my view it seems inevitable.”
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