Warnings over future of eurozone

The eurozone is heading towards a break up unless there are moves towards much closer political and fiscal union, according to chief economist with State Street Global Advisers, Chris Probyn.

There were fears throughout most of 2011 and into 2012 that the single currency would unravel amid unbearable strains between the member states.

But the much more interventionist ECB under president Mario Draghi has calmed market fears, particularly in a speech last July when he said, “he would do whatever it takes to save the euro”. At the beginning of last September the ECB announced the Outright Monetary Transaction (OMT) programme that promised unlimited purchases of the short term debt of distressed member states in return for signing up to economic reforms.