Euro will survive the European debt crisis

27th November 2010, Comments 0 comments


The head of the Netherlands Authority for the Financial Markets, Hans Hoogervorst, says he is convinced the euro will survive the European debt crisis. Speaking at the annual Day of the Investor, he argued that no euro country would benefit from a break-up of the euro zone.

Mr Hoogervorst warned that abandoning the euro—for example, if Germany did so—would only harm Holland's exports. It is generally assumed that a new Dutch currency would be stronger than the euro, making Dutch products and services relatively expensive.

Countries facing financial difficulties, such as Ireland, Portugal and Spain, Mr Hoogervorst added, have no interest either in leaving the euro zone. Such countries would end up with debts fixed in euros whereas their new currency would be likely to be worth much less than the euro.

© Radio Netherlands Worldwide

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