Does Emerging Europe need the euro?

In contrast to the prevailing consensus, we believe that there is compelling evidence to suggest that the preservation of sovereign currencies – as opposed to euro-adoption – offers the best route to prosperity for Emerging Europe. Accordingly, while some form of break-up of the euro-zone would undoubtedly cause major disruption to the region’s financial markets in the near term, it is unlikely to have a detrimental impact on its long-run economic outlook.