Roach Says Euro Split Would Be Devastating Blow to World Growth
Stephen Roach, non-executive chairman of Morgan Stanley Asia, said a breakup of Europe’s single currency would be a “devastating blow” to the world economy.
Despite longstanding doubts about the euro project, “never in my darkest dreams did I think there would actually be a meaningful risk of a euro breakup,” Roach told the “Bloomberg Surveillance” radio program in New York. “If that were to happen it would be a devastating blow to the world economy.”
The European economy is already in a “mild recession,” Roach said, adding that proposals to hold a referendum in Greece will discourage China from giving financial support to Europe.
“This type of initiative is off the table right now given what’s going on in Greece,” Roach said. “The last thing the Chinese want to be accused of is sending dumb money to Europe.”
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