'Single currency will collapse'

By DAILY MAIL REPORTER
Updated:

 

SIR ALAN WALTERS, Margaret Thatcher's guru during the 1980s economic boom, has launched a scathing attack on the euro. Walters, who predicted the Exchange Rate Mechanism would fail, believes the single currency will collapse within five years.

He says it will be ripped apart by internal contradictions. He points to different growth and inflation rates between member states, high unemployment and the budgetary problems faced by some countries, such as Portugal.

'We're already seeing real problems for the euro,' he said. 'I don't know how it will break up, but I know it will break up.' Monetary union, he said, could only work if preceded by political union.

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