Membership in the euro zone did not safeguard against sovereign insolvency, collapse of the banking system or economic recession, he said during Tuesday’s presentation of the latest economic trends worked out by the bank.
The examples of Finland, Slovakia and Slovenia showed that the euro did not warrant cheaper borrowing, either, the analyst said.
“Since the onset of financial crisis in 2008 the euro in itself has not brought the borrowing costs down. And I would say this should continue for at least several years to come,” Mauricas said.
Turmoil in Europe would continue until it managed to agree on a common vision, he said.
“The biggest concerns are related with the French who both have a record deficit and are very much unwilling to put their finances in order. They set a bad example – if France can violate the rules, why is it that the other countries cannot do that? This can definitely cast a shadow over the euro zone,” the economist said.
According to current projections, the euro should weaken since the US economy should grow faster than Europe, Mauricas added.
