Philip Booth discussed Mario Draghi's statements about the euro being 'irreversible.' He explained that across the entire eurozone there is a huge level of government indebtedness comibined with slow growth.
He argued that if peripheral countries remain in the euro they will have no prospect of growing themselves out of the debt problem. Considering the huge fiscal headwinds to come with ageing populations, the markets are correctly pricing the credit risk in the peripheral countries and underestimating the credit risks of other countries.
Watch here. Segment starts at 4.35