Eurozone is closer to break-up, warns Standard Chartered's Peter Sands

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    Jan 02, 2012 6:32 AM GMT
    http://www.telegraph.co.uk/finance/financialcrisis/8986159/Eurozone-is-closer-to-break-up-warns-Standard-Chartereds-Peter-Sands.html

    The chief executive of Standard Chartered has warned that there is an increasing likelihood of a country falling out of the eurozone because of the inability of politicians to resolve the crisis.

    The head of one of Britain's "Big Five" banks warned that any break-up of the single currency would have dire consequences for the global economy because it would be difficult to judge how the contagion would unravel.

    "Obviously we close 2011 with a huge amount of focus on the trials and tribulations of the eurozone," Mr Sands said.

    "I actually think the big news of last month's summit was that unfortunately once again the eurozone political leadership didn't really produce something that was that compelling or credible as a plan to deal with the problems and to re-engergise growth in the eurozone.

    "We enter 2012 with a very difficult outlook for the eurozone [and] with an increasing possibility of countries actually leaving the eurozone.

    "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.
  • xher

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    Jan 02, 2012 7:14 PM GMT
    It amuses me how they always talk about how the "global economy" will suffer if they go down. I'm pretty sure most developing nations will do just fine.
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    Jan 02, 2012 8:28 PM GMT
    xher saidIt amuses me how they always talk about how the "global economy" will suffer if they go down. I'm pretty sure most developing nations will do just fine.


    It really depends on which ones... you have to understand that most developing countries are "developing" for some legitimate reasons mostly related to bad governance so "fine" is relative. China's economy has already started faltering for a number of reasons and Europe's slow down will only further things along... India's economy has already started faltering...