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Europe sleepwalking to economic disaster, say experts

“Euro will disintegrate” unless there is “significant burden sharing” between member states, warn economic experts.

Image: Michael Probst/AP/Press Association Images

THE EU IS sleepwalking to economic disaster and the Euro is doomed with “incalculable economic losses and human suffering” according to an extraordinary new report by a leading group of economists.

“”We believe that …Europe is sleepwalking toward a disaster of incalculable proportions. The sense of a never-ending crisis, with one domino falling after another, must be reversed,” the Institute for New Economic Thinking, which is backed by veteran investor George Soros, said.

Two members of Germany’s Council of Economic Experts and leading euro specialists at the London School of Economics were among the experts who c0-authored the report.

Among their recommendations, they urged an early, temporary mutualisation of debt, which Germany has ruled out, and for the European Central Bank to become a lender of last resort in the longer term.

“A successful crisis response must be collective and embody some burden sharing across  countries. Absent this collective constructive response, the euro will disintegrate.”

UK in worst double dip recession for 50 years>

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