Europe has been plunged into economic chaos following the outbreak of the coronavirus, with some nations on the brink of recession. But experts have now warned of a simmering “existential threat” to the monetary union in the next decade, with expectations for growth at all-time lows.
Officials from ING, an economic and financial corporation in Amsterdam, warned economic challenges could push the bloc's potential growth rate to less than 1 percent, down from the annual average pace of 1.4 percent of the previous decade.
The report read: "Even before the coronavirus outbreak, dark clouds had been gathering over the eurozone economy, with Italy in the eye of the storm.
“Over the next 10 years, the region's potential growth rate will likely slow to a crawl while Italy faces a stagnation far worse than anything Japan has seen.
The eurozone is on the brink of a crisis (Image: GETTY)
“As a new decade dawns, expectations for growth in the eurozone are meagre at best.
“The outbreak of the coronavirus has already derailed a fragile economic recovery this year and is threatening to push some countries into recession.
"But the region's economic challenges aren't confined to the short-term.
“In the next 10 years, demographic and structural headwinds, and a limited appetite for reform, could push the bloc's potential growth rate to less than 1percent, down from the annual average