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Some Euro Countries Could Benefit from Debt Crisis

The sovereign debt crisis, wrecking havoc on some periphery euro zone member states, could turn out to be a positive for many core European counties, Karen Olney, chief European equity strategist at UBS, told CNBC Wednesday.

Sovereign crises, which are a problem for countries like Ireland and Greece, make authorities keep rates very low and do everything they can to support growth, Olney said.

"What that does is it boosts a very solid core," she added.

Euro zone countries such as Germany, the Netherlands and France are seeing solid economic growth despite the debt problems in the periphery, Olney pointed out.

The European Central Bank's policies of keeping interest rates low for an extended period and carrying out asset purchases can benefit all of the EU countries, not just those struggling, she said.

"The engine of growth carries on while you fix the sovereign problem," Olney said.

The yield spreads between bonds of debt-laden countries such as Ireland and Portugal pushed higher against the benchmark German yield Wednesday, signaling that concerns over the debt levels are not over.

Meanwhile, protestors took to the streets across Europe in response to the widespread austerity measures put in place by cash-strapped European governments.

Contact Europe: Economy

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