He also said that the market sentiment has improved tremendously in the real economy. “Spain may avoid a bailout, he noted and he insisted that growth’s needed in the country”.
In addition he stated that if UK left the EU, we’d alla be losers. “UK must clarify it’s position with Europe”, Dallara said.
Cyprus, rather than Spain, Italy or Greece, poses the biggest sovereign risk to the euro zone,
“I think Cyprus is, on a country level, the most serious risk the euro zone faces today, not Spain, not Italy, not Greece,” Dallara told CNBC yesterday.
“I see a disconnect between Cyprus and its euro zone partners, and I see little sense of how to bridge the gap there. This concerns me, and I also think the risk of complacency, of underestimating the potential contagion impact if you mismanage Cyprus, is quite high,” he added. (Capital.gr)