EURO EXIT ‘WOULD BOOST ECONOMY’
Breaking up the eurozone would unleash economic growth and prosperity across Europe, a study said
Friday July 6,2012
By Macer Hall
BREAKING up the eurozone would unleash economic growth and prosperity across Europe, a prize-winning study said yesterday.
Researchers said allowing Greece or another member state to quit the European Union’s single currency would have a “distinctly positive” effect. And a smooth departure could be organised secretly within weeks and achieved over a weekend.
The report, by a team at analysts Capital Economics, won the £250,000 Wolfson Economics Prize for the best essay detailing how a country could leave the euro.
The firm’s founder Roger Bootle said: “Our analysis revealed tricky issues which any exiting country would need to face but all of these difficulties can be overcome.”
Under the plan, an exiting country would establish a new currency which would have exact parity with the euro on the day of departure.
Tory peer Lord Wolfson, who offered the prize, said: “I hope the work of our worthy winner, Roger Bootle, will be of help to policy makers.”