End of Euro? How EU bank could ‘lose monopoly’ to control money in Eurozone
Italy’s solution to their “severe debt crisis” worsened by the coronavirus could result in the end of the euro currency, according to the Bruges Group. Spokesman Robert Oulds explained to Express.co.uk why the southern European country’s only way out of economic turmoil could be to start issuing a “parallel currency”. Mr Oulds warned that this could spell danger for the European Union Central Bank, who could ultimately lose the ability to control money in their economic zone.
He told Express.co.uk: “Italy’s the one to watch through this crisis.
“They might start issuing what would become a parallel currency, at which point the European Central Bank loses its monopoly to control money within the Eurozone.
“We would see the end of the euro as the single currency within the Eurozone.
“The whole thing could unravel because this is going to be the only way that countries like Italy are going to get the funds to get their economies through this crisis.”
Mr Oulds continued: “Italy’s been in a crisis, economically now, for a decade so this is now going to be a severe situation where their debts will absolutely skyrocket.
“The only European Union response will be that they must cut their public spending and raise taxes.
“That will actually make the debt crisis worse because it will just destroy the economy further.
“What will have to happen is that countries like the German taxpayers are going to have to underwrite Italy and be paying for that and have a massive fiscal transfer from northern European countries with less severe debt situations to southern Europe.”
The Bruges Group representative added: “However, those countries are not prepared to do that.
“That means countries such as Italy must start going down a route which is effectively an exit from the euro.
“Countries such as Britain, America, Japan, our finances are in less of a state, we can get through this.”
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Mr Oulds continued: “Countries in southern Europe, particularly Italy, won’t be able to.
“At least, they won’t be able to until they start controlling their own monetary policy. That’s the only way.
“That ultimately would mean that in 2021, when they get hit by a severe debt crisis, even more than they’re in at the moment, they’re only alternative would be for the country to start issuing its own debt.
“The nation could raise money through issuing its own currency.
“That would effectively mean the end of the euro.”
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