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When Will Eurozone Break Up?

April 10, 2017 by Andriy Moraru

The talks about the final days of the eurozone are not new. Back in 2012, I have posted a poll, which is currently showing that a quarter of traders expect the dissolution of the monetary union. Nowadays, things look even more serious. With the United Kingdom having invoked the Article 50, and Marine Le Pen showing a lead in the opinion polls for French presidential elections, it is difficult to be a eurozone optimist.

Mario Draghi with Alexis Tsipras and Marine Le Pen

Although the process of the eurozone enlargement has not yet stalled and it is like to welcome new country members in 2020 or so, the support for the euro adoption is falling in the only country participating in the ERM II (Denmark). Moreover, the people’s opinion in the founding nations of the European Union — France and Italy — shows a considerable rise in favor of abandoning the single European currency.

The next German federal elections, which are likely to be held on September 24, 2017, might bring more euroscepticism to the stronghold of the European unification. Without powerful political and economical support of the eurozone’s largest economy, the monetary union will become even more vulnerable to the current rise of the anti-globalism trend.

I believe that the economic benefits of the eurozone outweigh its disadvantages. I am also quite certain that there is both popular and expert consensus among current eurozone members that ditching the euro is not in their best interests. This, in my opinion, will ensure preservation of the monetary union and its currency through the next few years at minimum. And what do you think about it?

When will the eurozone dissolve?

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PS: This poll will expire on January 1, 2018.

If you want to share a detailed opinion about what will be bring the end to the eurozone, please feel free to post your thoughts using the commentary form below.

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