The head of Standard Chartered Bank reckons political leaders are yet to offer meaningful solution to the eurozone sovereign debt crises. He also predicted the growing likelihood of one or more countries leaving currency bloc.
In an interview with the Sunday Telegraph newspaper, Peter Sands, chief executive of the bank’s Asia division, told:?”Nobody should underestimate what a big deal that would be, because it would be very difficult to manage the contagion risk, even if it was only?Greece. The disruption from that would really be quite significant. That will have ramifications all over the world.”
However, European Central Bank?s Christian Noyer in France has defended on the currency union by saying: ?The euro could become the world?s leading currency if leaders of the 17-natio bloc succeed in tightening fiscal integration.?
?In 10 years, maybe the euro will be the world?s number one currency,? Noyer wrote in an article for Journal Du Dimanche.
However, the newspaper published an opinion poll which showed 50% of French people thought the currency had been a bad idea, but 35% people disagreed with it.
Presently, many eurozone leaders and policymakers are scrambling to lookout for a way which can reassure investors and stop euro crises that is in its second year.
?I think the probability of countries leaving the euro has increased because we had many successive plans announced to solve the problem the euro zone problem which simply haven?t convinced the market which ultimately the current structure and shape of the euro zone only works if the market believe its worth supporting,? Peter Sands said during the interview with the British newspaper.
?The solutions available at any one time are not necessarily available at the next step and so I think the solutions base has narrowed because we have missed opportunities,? he added.
Presently, the eurozone crises have increased the pressure on junior AIM stock market as 24 companies have already quit and just 16 joined in the final quarter of 2011.?Many economists around the world have predicted that the eurozone will scrape through this year in one piece. Many pundits are finding it difficult to predict the outcome of situation which is largely targeted on politics.
However, some economists have also warned that the dissolution of eurozone would bring dire consequences and6 will be very difficult compensate.
Sources: Reuters, Economic Times