'Sun Worldwide' - European Union May Not Survive

Miami, Florida (PressExposure) March 04, 2009 -- Sources close to Sun Worldwide suggest that the private fund is mindful of fractures developing in the delicate fabric of European Monetary Union. Attention has focused on the dire state of many Eastern European nations who have borrowed vast sums of money from banks in Western Europe in order to expand their economies.

The global credit crunch has decimated property, financial and export markets within these countries leaving them without the means to service the loans made by some of Europe's largest banks.

Sun Worldwide analysts are thought to believe that a default by just one of these nations would set off a domino effect that could destroy the Euro.

Austria alone has lent some $230bn in the region and a default rate of 10% would more than likely destroy its financial sector if, as expected, borrowing nations are unable to rollover the loans.

One of the Sun Worldwide sources said that an EU-wide solution to the problem was unlikely given the current propensity for member states to focus on their own domestic issues and in the absence of a central fund with the monetary latitude of the US Federal Reserve.

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Press Release Submitted On: March 04, 2009 at 11:26 pm
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