The sand in the hourglass for Europe to solve its debt crisis is running quickly and the chances of a successful resolution grow slimmer by the day, David Rosenberg, chief economist at Gluskin Sheff and Associates told CNBC’s “ Worldwide Exchange ”.
Greece goes to the polls again this weekend following the failure of May elections to provide a decisive winner amid growing support for the populist Syriza party, which has stated it will renege on its bailouts terms and conditions agreed by the previous Greek government.
This has thrown the entire bloc into a heightened tumultuous state with the once unmentionable talk of a disintegration of the single currency now being cited by numerous experts as the most likely and even preferable solution to the mess.
“There is no history of an economic union surviving without a political and fiscal union and the problem in the euro zone is that if you want to go through that route you have to pass legislation in all these different countries. It’s very complicated and time is running out. To embark on this path will probably take years,” Rosenberg said.
Spain sought a bailout of its banks at the weekend but opacity surrounding the deal has added to uncertainty as the markets reacted negatively, of the latest bailout's ability to contain the crisis.Page 1 of 3 | Next Page