Bloomberg News

Flossbach Sees Euro Union Down to 6 Countries, O Globo Says

July 01, 2012

Bert Flossbach, chief executive officer of German asset-management firm Flossbach von Storch AG, sees the euro monetary union reduced to six countries in Central Europe, O Globo newspaper reported, citing an interview.

Greece, Portugal, Cyprus will be the first countries to leave the bloc, he said, adding that Italy’s and Spain’s economic situations also raise concerns.

Greece won’t be able to pay back the amount of credit granted by the European Central Bank during the crisis and the market will see its exit out of the bloc with relief, Flossbach is quoted as saying.

The European Union will have to financially help the Italian and Spanish banks, otherwise the effect of the crisis would contaminate other banks in an “unthinkable disaster,” Flossbach is quoted as telling O Globo.

The article didn’t list the six nations Flossbach saw maintaining the euro currency, though they will be “culturally and economically homogeneous,” he told the newspaper.

To contact the reporter responsible for this story: Maria Luiza Rabello in Brasilia at mrabello@bloomberg.net

To contact the editor responsible for this story: Sylvia Wier in New York at swier@bloomberg.net


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