IMF says EU on the verge of collapse, while the Euro will have to decline.
The international organization says: “the Euro Area is at a critical point. Mess is getting bigger and it is unacceptable,” writes express.co.uk/.
The future of the Euro currency and the entire project of the EU is unsustainable without significant changes, it follows from the damning review by the International monetary Fund and prominent economists.
The IMF warned that Britain’s decision to withdraw from the EU could seriously hinder prospects for growth in the region.
Before the vote on Brexit, the IMF predicted Eurozone growth of 1.7%.
However, after a referendum in the UK, the organization revised its forecast, saying the drop to 1.6 percent this year and 1.4 percent next year.
The IMF warned about the onset of the economic chaos in case of a victory of the supporters of the yield and has called for a “smooth transition” in the subsequent period.
The international organization says: “the Euro Area is at a critical point. Mess is getting bigger and this is unacceptable”.
“If collective problems are not solved, the Euro area is likely to suffer from repeated bouts of economic and political instability, leading to crises of confidence and economic failures.”
In a damning statement also said that the migration crisis might even mean the end of free movement, and warned that other countries block want to hold their own referendums following the vote, Brexit.
Economist and Nobel laureate even said that Europe may have to abandon the Euro”.
Economist, Professor Pissarides said that the uncertainty will reduce investment and will hurt the creation of new jobs.
His warning came along with others:
– The analyst of French Bank Societe Generale warned that France and Italy could exit the single currency of the EU.
Rating Agency Moody’s said that the future of the entire EU is under threat.
Banks across Europe have been under increasing stress.
-The world’s largest hotel group predicted that the fall of the pound will lead to a tourism boom for Britain.
But the IMF also said that the forecast would be even worse, if the negotiations between the UK and the EU will be delayed.
Mahmood PRADHAN, Deputy Director, European Department, IMF, said, “If this neglect of risk will be delayed, we believe that its impact will increase, and at this point, it is very difficult to say how long this period of uncertainty will continue.”
The Washington-based Fund underscores the importance of the UK as a trading partner for the EU , the country accounts for 13 percent of EU exports.
Source: http://www.newscom.md/
