• The European single currency is facing an ‘inevitable break-up’ a leading French bank claimed yesterday.
• Strategists at Paris-based Société Générale said that any bailout of the stricken Greek economy would only provide ‘sticking plasters’ to cover the deep- seated flaws in the eurozone bloc.
• The stark warning came as the euro slipped further on the currency markets and dire growth figures raised the prospect of a ‘double-dip’ recession in the embattled zone.
• Claims that the euro could be headed for total collapse are particularly striking when they come from one of the oldest and largest banks in France - a core founder-member.
• In a note to investors, SocGen strategist Albert Edwards said: ‘My own view is that there is little “help” that can be offered by the other eurozone nations other than temporary, confidence-giving “sticking plasters” before the ultimate denouement: the break-up of the eurozone.’
• He added: ‘Any “help” given to Greece merely delays the inevitable break-up of the eurozone.’
• The French bank’s warning was echoed by Mats Persson, Director of the Open Europe think-tank, which campaigns for reforms in Brussels.
• He said: ‘The eurozone is facing a fully-fledged crisis. The Greece episode has made it painfully clear how flawed the euro project was from the very beginning.
• ‘Even if Greece receives a one-off bailout it would not solve the real problem, which is the huge differences in competitiveness between the eurozone’s richest and poorest members.
• If these differences are to be evened out, the EU would need a single budget and common taxes so it can redistribute resources.

(Single budget and common taxes for all of Europe? How about a ‘euro army’ while we are at it…)