BBC — The man tipped to be Donald Trump’s ambassador to the European Union has told the BBC the single currency “could collapse” in the next 18 months.
Professor Ted Malloch said he would “short the euro” – taking a market position which bets on the value of the currency falling.
He also said Britain could agree a “mutually beneficial” free trade deal with America in as little as 90 days.
“I remind people that the largest merger and acquisition deals in history are often done in about that time frame [90 days],” Mr Malloch, a professor at Henley Business School, said.
Once outside the single market and the customs union, the UK could bypass “the bureaucrats in Brussels” and forge a free trade deal, he said.
Mr Malloch added that any attempt by the EU to block Britain beginning negotiations with the US would be “absurd”. “There are going to be all kinds of things happening behind closed doors and you can call them what you like” he said.
Mr Malloch said despite the obstacles, Britain would gain a free trade deal well ahead of the rest of the EU and the elections in the Netherlands, France and Germany could lead to a fundamental shake-up of the union.
“I personally am not certain that there will be a European Union with which to have [free trade] negotiations,” he said.
Mr Malloch said that the present free trade negotiation between the US and the EU – called the Transatlantic Trade and Investment Partnership – was “dead”.
He also questioned the future of the single currency. “The one thing I would do in 2017 is short the euro,” Mr Malloch said.
“I think it is a currency that is not only in demise but has a real problem and could in fact collapse in the coming year, year and a half.
“I am not the only person or economist of that point of view.
“Someone as acclaimed as Joseph Stiglitz – the famous World Bank economist – has written an entire book on this subject.”
