Partial break-up of euro “inevitable” in 2012, says Leach

An “inevitable” partial break-up of the eurozone and a possible return to former currencies could be on the cards in 2012, says Jeremy Leach, managing director of MPL.

The even application of fiscal policies to tier one countries like Germany and tier two countries like Greece was always going to result in a default, most likely by Greece, he says.

“We shall see some exits from the euro and it would make  sense for them to adopt their own currency,” says Leach.

“The highest risk countries are Spain, Portugal, Ireland and Greece. We shall see at least one exit in 2012.”

Leach remains positive on the benefits of tier one countries sharing the single currency and consequently predicts a partial rather than full, break up of the euro in 2012.

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