EU must prepare for twin track euro - Buxton

Europe may see a ‘twin track' single currency emerge as the sovereign debt crisis unwinds, said Schroders' Richard Buxton.

The manager of the £2.5bn UK Alpha Plus fund expects the eurozone crisis to reach a “crescendo” in the first quarter of next year. The final outcome could be several eurozone countries remaining in the European Union but exiting the single currency, he suggested. “Even if the ECB and Brussels provides a lot of assistance to countries such as Italy and Spain to try to ensure fiscal union, if the price of fiscal union is giving up some sovereignty, some states will not put up with it and will leave. So the euro members would shrink to a smaller group.” Buxton said eurobonds are likel...