Hans-Olaf Henkel, the well-respected former head of the country’s main business federation, said his earlier support for the euro was ‘the biggest professional mistake I ever made’.
A top German business leader today called for his country to quit the euro and join richer northern neighbours in a currency block instead.
He called on Germany, Austria, Finland and the Netherlands to quit the euro – ditching struggling economies such as Greece, Spain, Portugal and Italy - and set up a new currency of their own.
Such a move – perhaps the closest thing possible to the return of the Deutsche Mark - would be highly controversial as Germany is the area’s powerhouse economy and has so far insisted it will stand behind the euro.
But Mr Henkel said: ‘We need to focus on saving Europe, not the euro.’
It came as ratings agency Standard & Poor’s – which recently stripped the U.S. of its prized AAA credit score – downgraded its growth forecasts for Europe.
‘We continue to believe that a genuine double-dip will be avoided,’ said Jean-Michael Six, the group’s chief economist for Europe. ‘Nevertheless, we recognise that downside risks are significant.’
S&P cut its growth forecasts for the Eurozone to 1.7 per cent for 2011 and 1.5 per cent for 2012, from 1.9 per cent and 1.8 per cent. It also trimmed its outlook for Britain to 1.3 per cent and 1.8 per cent from 1.5 per cent and 2 per cent.
Chaos: Yet more clashes outside the Greek parliament highlight the failure of the euro, Mr Henkel said
Read more: http://www.dailymail.co.uk/news/article-2031808/German-business-chief-calls-country-quit-euro-join-new-currency-Austria-Holland-Finland.html#ixzz1WaWOEBtf
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