Those calling for the EU to break up should be careful for what they wish for, according to a new report from ING, broken down by Ambrose Evans-Pritchard.
A new report from the firm says that such an event would be worse-than-Lehman, as it would prompt massive currency collapse and inflation within the weak periphery countries. Germany would experience a deflationary shock, as would the US, while the North American economy would contract 5%.
Anyway, you can read the full summary here, but suffice to say it’s one horror after another.
Even if it wouldn’t be that bad, you have to figure that EU leaders would be too terrified to see how things would play out. Certainly deeper integration between the economies is the path of least resistance.