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EUROZONE ON THE BRINK

Euro could be SCRAPPED with EU set for a ‘weak’ and uncertain future

IMF warns eurozone is on the brink as Nobel Prize winning economist says euro could be on its way out

If the Greek debt isn't resolved it could throw the entire Eurozone into crisis

EXPERTS have warned of the eurozone's 'increasing vulnerability' to shocks in an annual check-up on the economic health of the region.

The pro-EU IMF said growth would slow from 1.6 per cent this year to 1.4 per cent in 2017 "mainly due to the negative impact of the UK referendum outcome".

The IMF's annual report says eurozone more vulnerable as Academic Joseph Stiglitz blames the euro for many of Europe's problems
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The IMF's annual report says eurozone more vulnerable as Academic Joseph Stiglitz blames the euro for many of Europe's problems
Unemployment in the eurozone is at 10.1 per cent compared to 5 per cent in the UK
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Unemployment in the eurozone is at 10.1 per cent compared to 5 per cent in the UKCredit: Getty Images

The report added the region was being dragged down by "crisis legacies of high unemployment, elevated public and private debt, and deep-rooted structural weaknesses".

"The medium-term outlook remains weak and is endangered by a lack of collective action to address common challenges," the assessment said.

Unemployment rates in the eurozone are currently at 10.1 per cent, compared to 5 per cent in the UK.

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The figure is 19.8 per cent in Spain and 24.1 per cent in Greece, where severe economic instability has led to civil unrest.

The IMF warned the eurozone is under threat from Euroscepticism in countries including France, Italy and the Netherlands following the Bexit result.

The international financial organisation also urged EU countries to "rapidly integrate refugees" and to reform "common border and asylum policy to protect social cohesion and preserve the single market".

Meanwhile Nobel Prize winning economist Joseph Stiglitz, a former chief economist of at the World bank and adviser to Bill Clinton, said the euro is causing many of Europe's problems.

In his new book Joseph Stiglitz says the decision to adopt a single currency in 1992 was "fatal"
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In his new book Joseph Stiglitz says the decision to adopt a single currency in 1992 was "fatal"

The academic's new book argues the currency has been flawed since its birth and is threatening to destroy the region's prosperity.

French Bank Societe Generale's equity strategist Albert Edwards said: "It is only a matter of time before the eurozone project fractures."

The rise of "nationalistic and protectionist movements" could also threaten the region's existence, according to ratings agency Moody's.

Sterling has fallen around 10 per cent against the euro since the Brexit vote.

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