Nobel Winner: Spain’s Collapse Would be End of the EuroSubmitted by bobbyw24 on Thu, 01/13/2011 - 08:32
The European Union doesn’t have the resources to rescue Spain if it “collapses,” an event that could lead to the end of the euro, Nobel Prize-winning economist Christopher Pissarides said.
A collapse would be “a very serious problem,” Pissarides, who teaches at the London School of Economics, said at a forum in Beijing today. Such an event “might even see the end of the euro as a common currency,” he said.
Spain plans to auction debt tomorrow in the next test of investors’ confidence that the nation can weather Europe’s sovereign-debt woes. Prime Minister Jose Luis Rodriguez Zapatero is aiming to prove he can finance his government’s commitments amid high unemployment and after bailing out savings banks.