Tripple Dip Recession and the Euro - Simon Dixon

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Comment by tweeting @SimonDixonTwitt - EU budget talks will pave the way for the breakup of the bloc: Simon Dixon

A banker says European Union members will not reach an agreement on the trillion-dollar budget talks, paving the way for the breakup of the bloc.

This comes as German Chancellor Angela Merkel urges EU members to work together to reach a deal as the bloc's 27 states remain divided on the one-trillion-euro 2014-2020 budget.

Press TV has conducted an interview with Simon Dixon, CEO of Bank to the Future.com, from London, to further discuss the issue. The following is a rough transcription of the interview.

Press TV: Tell us about, first of all, the significance of what the German Chancellor has said about them being not sure that an agreement is going to be made and how that might affect it all.

Dixon: I think what we're seeing from the German side is some real honesty.

The likelihood of getting 27 countries to agree when we're moving into a triple dip recession all around, when top of the agenda for most of the countries is austerity measures, budget cuts and trying to pay off the national debt, the likely of getting people to agree to a trillion stimulus for the European Union is highly unlikely.

It's a refreshing change to actually hear to expect some hardness in getting everyone to agree.

Press TV: Tell us the affects, Mr. Dixon, if it does not happen. If an agreement is not reached, tell us the types of affects that we might see.

Dixon: It just adds to the rocky round that we're seeing in the European Union right now. They better get prepared for that because the agreement won't be reached, I'm almost certain of it.

The consequences are is there's more pressure on the European Union, more pressure for the interrelations between its members. The pressure's going to get a lot worse as we move into a worse economy in 2013 and more budgets are required to do more banking bailouts as well.

Press TV: Let's look at that overall pressure that possibly is more on the EU and possible effects as far as the inter-union relationships. How do you see it affecting various countries?

Dixon: David Cameron and the British have been very outspoken on it.

There's lots of pressure between the French, the Germans and particularly the Italians. Then we have some of the other members and the relationships aren't very strong at the moment.

All this is going to do is put more pressure on it. I'm forecasting this year that we're going to see some of the first exists from the European Union which will probably have the domino effect with others.

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