No quick fix for euro, says SocGen

A costly breakup of the eurozone is unlikely, according to Societe Generale, but there are also no quick solutions to turn the situation around.

The eurozone debt crisis continues to cast a shadow over markets entering 2012, though there is no immediate risk of a eurozone breakup, said Societe Generale at a media briefing this week. The euro will survive in the end, but the process will be long, painful and muddled, the bank added.

Most concerns centre on Italy, given that it has the second-biggest share, or 23%, of the total eurozone government debt and may not be able to finance itself. Italy's average nominal gross domestic product GDP growth from 2011 to 2015 is expected to be below 4%, which is lower than the current Italian 10-year bond yield of 7%. Fitch...

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