Euro has 'one in five chance' of collapse - papers

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The chances of the euro breaking apart or disintegrating completely have been put at "one-in-five" by one of the UK's leading economics consultancies.

In a research paper published today, the Centre for Economics and Business Research claims keeping "the euro alive will require cuts in living standards greater than the UK faced in the Second World War" for weaker eurozone members, writes the Telegraph. His warning came as the Ernst & Young eurozone forecast raised the prospect of a severe recession in the eurozone to one-in-10. Its "central" prediction is for GDP to grow 1.4% next year, against 1.7% in 2010, and an average of 1.9% for the following three years. Following the resurgence of sovereign debt fears, though, there are now ...

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