Euro 'likely to begin breakup in 2012'

Businesses operating in the eurozone are likely to see the single currency begin to break up over the next 12 months, according to the Centre for Economics and Business Research (CEBR).

In its predictions for 2012, the analysis group has forecast a 60 per cent probability that at least one country will leave the euro by the end of the year, with GDP set to fall across the continent.

Meanwhile, the body is also revising its predictions of an eventual breakup of the eurozone within the next decade from 80 per cent to 99 per cent.

In addition, chief executive Douglas McWilliams stated that it is likely that banks across Europe may be bailed out in 2012, with crisis conditions emerging in many countries.

"I would expect to see most of the French and German banking systems bailed out to compensate for the write-downs on their sovereign debts. They might even be nationalised as well," he said.

This comes after a report from Gartner last month suggested that the ongoing eurozone debt crisis has increased pressure on companies to implement risk management policies to cope with any potential issues that may arise.