EMU Break-up: Pay Now, Pay Later

ING’s economics and strategy team has updated its report quantifying the impact of a possible fracture of Europe’s monetary union. emubreakup 011211The revised estimates suggest an even bigger blow to the region’s output: in a complete break-up the loss could exceed 12% within the first two years. This is substantially greater than the damage that followed the collapse of Lehman Brothers in 2008. Unfortunately, the efforts of Eurozone leaders to avoid this fate are proceeding slowly. The paradox of Merkelism is that the core countries’ attempts to limit their exposure are increasing it.

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One Response to EMU Break-up: Pay Now, Pay Later

  1. Pingback: EMU Break-up: Pay Now, Pay Later « Föhrenbergkreis Finanzwirtschaft

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