World Bank Warns That Euro collapse Could Spark Global Crisis
June 17, 2012
The outgoing head of the World Bank,
Robert Zoellick, will warn the G20 summit that Europe runs the risk of
sparking a Lehman-style global crisis that will have dire consequences
for developing nations.
World Bank president Robert Zoellick will tell the G20 summit that the
euro crisis could hit developing nations. Photograph: Saul
Loeb/AFP/Getty Images
As Greek voters go to the polls in elections that could determine the future of the eurozone, Zoellick told the Observer he was advising emerging nations to ready themselves for the consequences of events in the single-currency area.
The election of an anti-austerity government would spark the most serious crisis for the euro so
far, following the apparent failure of a Spanish bank bailout last
week. German chancellor Angela Merkel yesterday ruled out renegotiating Greece‘s
bailout, saying the country must stick to its deals with international
lenders. Unofficial polls suggest the conservative New Democracy party
is ahead of the anti-austerity Syriza by four percentage points — though
as much as 15% of the electorate remains undecided
