Well-known fund manager Neil Woodford says the Eurozone was “fundamentally flawed from the beginning of the project” in an interview on the BBC’s HardTalk.
He says that having the same interest rates and monetary policy for two economies that are so different – Greece and Germany – was a flawed assumption at the inception of the Eurozone.
He also says that while people underestimated the determination of the policymakers to keep the Eurozone afloat, economics has a “habit of overruling the politics”.
Woodford, who started his own fund last year, also warned of the impact of a UK exit from Europe.
“The likelihood of a referendum, I think, will put a brake on external investment, international investment in the UK,” he says.
The macro-economic environment in which Woodford has been working now contains more political risk than ever before due to ongoing Eurozone risks and the impact of a referendum over the UK’s membership of the EU, he tells viewers.
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