After the recent experience with the Brexit vote in the UK and election of Donald Trump as President of the US, which are indicative of a nationalist backlash against the pro-globalisation establishment, there is a fear that Europe will go the same way with nationalist forces in Italy, Austria, France, Germany, etc. triggering a break-up of the Eurozone. Of course, a break-up of the Eurozone has the potential to be a more traumatic event than the UK leaving the European Union or the change of Presidency in the US. This is because currencies would have to be re-denominated and borrowing costs pushed up in more heavily indebted peripheral Eurozone countries to reflect a likely sharp decline in the value of their new currencies, which would likely trigger a recession. Some see a Eurozone break-up as inevitable, but is it really? (VIEW LINK)
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