According to Joseph Stiglitz, a leading economist at the Columbia University of Business, the future of the Euro seems to be bleak, and the reason for this is due to the Euro region’s weak recovery stemming from austerity measures that have been taken introduced by several European governments.

The only answer as he suggests is ‘better economic cooperation’ which guarantees help from other countries. Taking the example of the country of Spain, which is currently dealing with a large deficit and a high unemployment rate, he thinks that the country could be subject to an attack by speculators.

Like most of the fellow Euro nations, Spain has introduced strict austerity measures and can easily push the unemployment rate which is at 20.5 percent (and the highest amongst the Euro nations) even higher.

With Spain’s budget deficit at 11 percent of its GDP, and with the credit rating agency Moody’s downgrading Spain credit rating from Aaa to Aa1, this is just one of the many examples of what austerity measures to cutting deficits can do to a nation.

Perhaps it is not so much the cutting of deficits that will affect these nations (and the Euro) but the haste in which this is being done, which could threaten the recovery of several of the world’s economies while pushing them into a double dip recession.

And as for the Euro, he believes that it might come under severe pressure due to the large deficits in many Euro zone nations, while also seriously doubting the future of currency in existence as well.