Ex-commissioner questions survival of euro

Frits Bolkestein, the former EU internal market commissioner, has questioned the chances of survival for the euro in the long term.

Mr Bolkestein, who served in the previous Prodi commission from 1999 to 2004, predicted in a speech delivered on Wednesday (25 January) that the common currency will face a huge test in around 10 years, when a pensions boom is likely to hit Europe.

The ageing of Europe's population will hit the continent "ruthlessly," the outspoken Dutch politician stated, with eurozone states like Italy being unprepared for the expected jump in pension claims.

These states "will be forced by political pressure to borrow more and increase their budget deficit, with consequences for interest rates and inflation," he indicated, adding "the real test for the euro is not now, but in ten years time".

The ex-commissioner concluded "therefore, in my view the long-term chances of survival of the euro should be questioned."

[fonte: EU Observer)