Greek crisis 'won't affect euro'

Economic problems in Greece will not affect the value of the euro in the long run, it has been claimed.

The Mediterranean country is in the midst of a debt crisis which has affected the single currency, bringing it to a ten-month low against the US dollar earlier this week.

On Tuesday (March 2nd), the euro was trading at $1.3436, its lowest level since May last year.

However, some analysts believe that Greece's financial issues will not have a long-term effect on the euro.

A poll conducted by the Chartered Institute for Securities & Investment found that 79 per cent of people working in financial services believe that the currency will survive the recent issues bringing it down.

Comments from respondents included suggestions that the euro is too politically important to collapse.

"The threat of a potential domino effect within the eurozone should be sufficient for the group to come up with a workable solution, for the time being at least," said one person.

Another added: "The euro has always been a political project rather than a financially pragmatic one. For this reason its members will not allow it to collapse, even if this comes at a great cost."

Posted by Sarah Pitton

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