Credit Suisse Warns That A Fresh Recession Will Cause The Eurozone To Collapse

European Union. BBC

The Telegraph: Fresh recession will cause eurozone collapse, warns Swiss bank

A recession in Europe could lead to the collapse of the eurozone, as the single currency would buckle under the political turmoil unleashed by a fresh downturn, a leading investment bank has warned.

In a research note titled "Close to the edge", economists at Swiss bank Credit Suisse warned the fate of monetary union hangs in the balance if Europe's policymakers are unable to ward off another global slump and quell anti-euro populism.

"The viability of the euro is contingent on the current recovery," said Peter Foley at Credit Suisse.

"If the euro area were to relapse back into recession, it is not clear it would endure."

Although the bloc's nascent recovery was likely to persist in the coming months, Credit Suisse said there were worrying signs of deterioration emanating from Europe's economies. These include heightened credit stress in the banking sector and market volatility.

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WNU Editor: Having a few million of migrants at the borders demanding to come in will also not help. And while I do believe that the EU will still stick together, it will not be in the form that we have become accustomed to.