If history is a guide, outlook for euro is grim

A REPORT from Dutch bank ING warned European countries would be plunged into “deep recession” should the euro be broken up and that some of those who reverted to previous currencies could be looking at devaluations of up to 50% if that happens.

ING has not said the euro will cease to exist but put together an economic model some months ago to try to get some handle on how European economies would fare in a post-euro regime.

Falls of between 5% and 9% in economic growth are projected based on the model used and overall the findings were a reminder for those hoping to see the back of the euro to be careful what they wish for.