A failed Euro is a failed Europe: CFA poll

By Staff | November 16, 2011 | Last updated on November 16, 2011
1 min read

An overwhelming majority of investment professionals equate a collapse of the Euro to a failure of Europe, according to a CFA Institute survey.

The study polled CFA Institute members in Europe and found 70% respondents believe that a break-up of the monetary unit in the Eurozone would be a failure of Europe. But at the same time, 63% of members said a break-up of the Eurozone is unlikely.

When asked about possible solutions to the eurozone crisis, more than half of the members (51%) suggested that greater fiscal union, including the creation of a European Ministry of Finance with tax raising powers for the euro area, could help resolve the crisis. Additionally, 61% believe both national governments and the private sector were responsible for the crisis, whereas only 3% believe that the latter is solely responsible.

“This survey of our members is very timely given the serious global economic challenges and the risks of contagion between financial markets worldwide,” said Nitin Mehta, managing director for Europe, Middle East and Africa at CFA Institute. “Whilst it is difficult to predict what may happen to the euro and European markets in the coming months, the respondents remain positive about the longer-term future.”

Interestingly, over half of the respondents were also of the opinion that countries which default on their sovereign debt should not be removed from monetary union in the Eurozone.

Advisor.ca staff

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.