Two Thirds Believe Euro Is Dead
Wednesday, 21 July 2010
A national survey has raised doubts as to whether the Euro will survive in the next few years, with two thirds of people believing that the recent financial troubles in Greece, Portugal and Spain are only the tip of the iceberg.
Of 1,343 people surveyed by leading foreign exchange broker Currency UK, 65 per cent said they had doubts as to whether the Euro will survive over the next few years and almost 90 per cent were pleased that Britain is not joining the Euro.
Of those who thought that the currency could disband, an over-whelming 89 per cent believed the recent issues with Greece would force many 'stronger' countries, such as Germany and France, to rethink their alignment to the currency.
Many of those questioned predicted that other countries would suffer similar fiscal woes to the Greek economy, citing Spain and smaller Eurozone countries as the major concerns in terms of additional pressure on the currency. Doubts were also raised regarding the political commitment to the eurozone following the reluctance demonstrated in offering support to Greece.
The survey is in contrast to a similar study conducted by Currency UK five years ago in which 76 per cent of those surveyed believed that the Euro was a strong currency and thought the UK Government should consider joining, in order to forge more robust trading links.
Adrian Jacob from Currency UK says: "This survey has highlighted that the public were initially blinded by the fact that they could spend the same holiday currency in a variety of countries and hadn't considered the economic implications.
"Respondents who traded overseas were more positive about the Euro as it eased cross-border trading issues. However this survey shows that there is now a greater understanding, and concern, that the Euro is not economically stable."
Adrian continues: "This survey is reflective of the current economic uncertainty. In the short term we are likely to see extreme market volatility - in the more medium term we could see Germany, the powerhouse of the Euro and the most reluctant to commit to a €500bn fund facility for troubled countries, strategising its exit from the currency.
"If this were to happen, the strength and longevity of the currency would come under immense pressure. If it marks the end of the Euro this would cause chaos and have huge cost implications for businesses operating throughout the Eurozone."
Notes to Editors
Fully regulated by the FSA, Currency UK is one of the UK's leading foreign exchange brokers, ensuring individuals and companies can access the best rate for currency transfers across FX markets.
A major participant on the foreign exchange market, Currency UK regularly offers the most competitive rate on currency exchange and has moved millions of pounds around the globe for its clients.
Currency UK is a member of the Association of International Property Professionals (AIPP) and is the preferred foreign exchange partner of the Offshore Financial Trade Association (0FTA).