Eurogroup chief warns of single currency break-up

razaq100

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Eurogroup president Mario Centeno warned the euro single currency could break apart if feuding governments don't bury the hatchet and agree on a rescue plan to help Italy and Spain.

The carefully worded warning came as the 19 members of the single currency still cannot agree on a rescue plan to reverse the devastating impact of the coronavirus pandemic on the European economy.

Italy and Spain are so far the continent's worst hit and are also among the eurozone's most indebted countries. On their own, they simply lack the fiscal firepower to restart their economies.

Centeno's plea for unity harked back to the worst days of the eurozone debt crisis when divisions between the eurozone's richer and poorer members almost sank the currency.

In a letter sent on Monday to European finance ministers and seen by AFP, Centeno said national budgets in Europe faced a "colossal shock" commensurate with the coronavirus outbreak itself.

"Inevitably, we will all come out of the crisis with much larger debt levels," added Centeno, who is also Portuguese finance minister.

"But this effect and its lasting consequences should not become a source of fragmentation," he said.

Following an ill-tempered EU leaders summit on Thursday, the ministers were tasked by the 27 EU heads of state and government to find a response to the crisis.


https://www.rte.ie/news/europe/2020/0331/1127594-euro-zone-coronoavirus-single-currency/
 
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First Strike

Chief Minister (5k+ posts)
This will have devastating consequences on European countries. They are already smashed by Covid 19.
 

kayawish

Chief Minister (5k+ posts)
it will be good if euro breaks up atleast German currency will come back which was far far more better then this shity EURO.