Eurozone troubles set to intensify in 2016: Hague

Date

12/15/2015 11:48:50 PM

(MENAFN- Khaleej Times)

William Hague the UK's former foreign secretary predicted on Tuesday that difficulties of the Eurozone will intensify in 2016.

"The deal with Greece is unsustainable and almost everybody knows that it is unsustainable" he said at the Arab Strategy Forum.

Citing his earlier prediction about the euro which he had described as a "burning building with no exit" Hague said his past forecasts on the state of the euro have come true.

He added that the greater crisis that will emerge in the Eurozone is not about liquidity but about competitiveness among countries and large economic divergences will lead to political fragmentation.

The migration crisis in Europe will intensify. Gently chiding Angela Merkel Chancellor of Germany for opening up the country to a large number of migrants from Syria Afghanistan and other conflict-ridden countries of Asia Hague said the EU will struggle to implement solutions for the migrant crisis threatening the EU and the Schengen visa countries.

"It's a year of profound challenges to EU" he said to the attentive audience.

He said the UK would stay in the EU. The referendum to be held in 2016 could move to 2017 and people would vote to remain in the EU even if 60 per cent of the voters were unenthusiastic about it. "One of the factors that would influence voters to continue to remain within the UK is if they vote otherwise; Scotland is more likely to leave the UK."

Hague said the UK will raise its global role in 2016 and that will translate into increasing its defence spending. He said the next President of the US will have a much more assertive foreign policy.

Ruling out the chances of Donald Trump succeeding to the White House he said it could be a toss between Hillary Clinton the Democratic party contender or a mainstream Republican nominee.

In the context of the US foreign policy in the Middle East Hague observed that while George W. Bush "overreached" the current President Barrack Obama had "under reached". "The cycle will turn under the new president of the US."

Hague said he expects the easing of tension between the West and Russia mainly on the basis of Europe finding it difficult to maintain its unity on the sanctions on Russia .

He said the West and the Arab world will continue to find Iranian foreign policy frustrating and obstructive. Despite the nuclear deal Hague said the West and Iran will feel their way to a better relationship but deep political divisions within Iran will make that difficult on the Iranian side.

Hague predicted a major cyber attack or breach in 2016 that could lead a major corporation to ruin or near ruin.

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