How to split up the euro

Author: | Published: 2 Oct 2012

2013 will be crunch time for the Eurozone, panellists at the IBA’s Legal Practice Division Showcase: ‘The euro area crisis – thinking the unthinkable’ have warned.

Efforts to reduce deficits in a number of debtor countries within the troubled euro area have in many cases succeeded only in reducing those countries’ GDP figures, thereby worsening an already sorry situation. For many countries, survival of the euro has come to mean harsh, and potentially ineffective, austerity measures.

In this climate, a Eurozone break-up is no longer unthinkable.

Bank of Ireland’s chief economist Daniel McLaughlin said the situation was obviously concerning, but almost inevitable considering the eurozone included 17 countries that did not fulfil the criteria for a monetary union.

“There are a lot of things wrong in the zone, and the situation has been further exasperated by global deceleration,” he said. “2013 is shaping...