THE eurozone is set to be destroyed due to the poor economies of Greece and Italy, a leading economist has warned.
The economist told German Magazine Focus southern countries who cannot afford reforms would be forced to leave the Euro as he said the anti-EU sentiment “cannot be avoided”.
He said: “In France populist voices may get very strong. It would be highly likely though that the EU would be destroyed if France was to exit. Anything else, aside from Germany, the EU can take.
"Instead we are doing the opposite, meaning, we are now also burdening the German banking system with a union based on joint liabilities only to drag on the insolvency of the south and to go into insolvency together one day.”
Economists are already fearing struggling Italian banks could spark a major financial crash as the European Central Bank deals with a struggling eurozone economy and debt-burdened Greece, Italy, Spain and Portugal.
Mr Otte said at some point the eurozone will explode.
He said: “Today we know that the Euro has damaged and thrown back the EU immensely. I said in my presentation in April 1998 that the system will last for about ten years, before the difficulties would begin.
“I don't expect that the Euro will explode in the next years. At some point it has to explode because it's artificial and can't function in this form.”
In June it was decided the European Central Bank would be allowed to buy up debt and prop up the eurozone’s ailing economies, supported by Germany’s central bank.
But Mr Otte said the crisis is ongoing when the EU needs to pull together.
He said: “We have indeed entered a financial crisis in instalments. We're facing tough times - I can confirm that. I can't yet see the figurative light at the end of the tunnel.”
He added: “The Brexit can and has to be the impetus for a basic reformation of Europe.”