© ReutersPortugal, Ireland, Finland and Greece could pull out of the single currency rather than have to operate under a single eurozone treasury.
The chairman of Goldman Sachs Asset Management has said that the need for a German-led fiscal integration in the eurozone would make it increasingly unattractive for all the countries who joined to stay in the single currency. Jim O'Neill, whose division manages more than $800bn (ยฃ500bn) of assets, said that countries as diverse as Portugal, Ireland, Finland and Greece could pull out of the single currency rather than have to operate under a single eurozone treasury.
Yesterday, Angela Merkel, the German chancellor, said the market turmoil could last for a decade and there was still "a chunk of work" to do.
"The Germans want more fiscal unity and much tougher central observation - with the idea of a finance ministry,"
Mr O'Neill said in an interview with
The Sunday Telegraph. "That will emerge for those that want to stay in this damn thing, or can stay in.
"With that caveat, it is tough to see all countries that joined wanting to live with that - including the one that is so troubled here [Greece]. If you wind the clock back, it was pretty obvious that economically probably only Germany, France and Benelux of the original joiners were the ones that were ideal for a monetary union.