The turmoil has fuelled speculation that the end of the euro in its current form may finally be in s
Thursday December 1,2011
By Macer Hall, Political Editor
ALARM at the economic turmoil in Europe intensified last night after the Government admitted preparations for the chaotic collapse of the euro were being “stepped up”.
Downing Street is understood to be embroiled in intensive “contingency planning” for Greece and possibly Italy, Spain and Portugal quitting the eurozone.
British banks have been urged by the City’s watchdog to brace themselves for the collapse of the single currency.
The financial services Authority warned that the unravelling of the 17-nation eurozone could wreak havoc on the UK banking system.
City sources said Hector Sants, chief executive of the FSA, made the plea at a crisis meeting with senior bosses from high street banks.
And, in a sign of growing panic, a senior French politician warned the crisis could trigger “the return to violent conflict” in Europe.
Alain Juppe, France’s foreign minister, added: “It could be the explosion of the European Union itself.”
 It could be the explosion of the European Union itself.  |
Alain Juppe, France’s foreign minister |
The turmoil has fuelled speculation that the end of the euro in its current form may finally be in sight.
The alarm followed the soaring cost of borrowing in Italy and other debt-hit Southern eurozone nations as well as growing fears for the French banking system.
Following the FSA warning, the Prime Minister’s spokesman said: “We have been stepping up our contingency planning but I don’t want to get into detail on that.”
He said the Government, the Bank of England and the FSA were working together “ensuring they have the capacity to take action” in the event of Greece or other countries quitting the euro.
This has been on the cards for years, it must be getting close if the 'die hards' are even admitting it.
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