Franklin Templeton emerging markets specialist Mark Mobius says an exit from the euro by any of the single currency members “doesn’t make sense”.
He says: “Moving into another currency does not solve any problems; in fact it’s running away from problems without heading to the root of what’s wrong.
“That’s why I’m baffled when people say a particular country should leave the eurozone.”
He adds: “As I see it, the choice to exit a currency is not made by the government, it’s a choice made by the people.
“If you ask any Greek citizen on the streets of Athens whether they want to put their savings in a currency other than the euro or the US dollar, I think you could imagine what the response would likely be. So, I think Greece will likely stay in the euro.”
Mobius says while the problems facing the eurozone look serious, he believes Europeans are on the right track in addressing fiscal issues affecting the bloc.
“Ultimately, these are issues impacting all developed countries, includng the US and Japan,” says Mobius.
The manager adds: “The good news is that the Europeans, in addition to providing more liquidity, are striving to get to the core of the problem by trying to impose fiscal discipline.
“For this reason, I think the outcome should be positive in the long term.”