Fresh recession will cause eurozone collapse, warns Credit Suisse

In a research note titled "Close to the edge", economists at Swiss bank Credit Suisse warned the fate of monetary union hangs in the balance if Europe's policymakers are unable to ward off another global slump and quell anti-euro populism. 

"The viability of the euro is contingent on the current recovery," said Peter Foley at Credit Suisse. "If the euro area were to relapse back into recession, it is not clear it would endure."

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"The near-term outlook for economic activity, as well as the risks around it, has shifted materially downwards," said the seven-page report.

The eurozone's 19 member states only managed to grow by 0.3pc in the last three months of 2015, despite asset purchases from the European Central Bank and the collapsing price of oil. Unlike the US and UK, the eurozone's GDP still lags below its pre-financial crisis peak.