The idea of two unions in Europe is “disunion” and if the euro area or the European Union were to break apart, the costs have been estimated at up to 50 per cent of GDP in an initial phase, European Commission President Jose Manuel Barroso said Wednesday, BBC informs. A beak-up will jeopardise the future prosperity of the next generation, he said in a speech in Berlin.
Citing a study, he pointed out that Germany’s gross domestic product would contract by 3 per cent and it would lose one million jobs if the euro area were to shrink to a few core member countries. On Wednesday, the debt crisis took a turn for the worse as Italian borrowing costs hit 7 per cent, a level widely seen as unsustainable and was the point at which Portugal, Greece and Ireland were forced to seek bailout.
Barroso urged all European Union members to adopt the euro and said the challenge is how to further deepen Euro area integration without creating divisions with those that are not yet in it. He said that there is no need to put more conditions for the countries that want to be in the core of the European project.