Europe's Politicians 'Cause of the Problem': Economist

The euro was doomed from its inception and is the reason that Europe is in an appalling mess, an economist told CNBC Monday.

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"It was always obvious it was going to fail, now it has failed we are heading for recession at best, depression at worst," said Roger Nightingale, economist at RDN Associates.

He added that it was a mistake to think that Europe's politicians – the cause of the problem in his view – could be the solution.

European Union finance ministers will hold a summit on October 23, amid mounting speculation that a concrete plan to tackle the debt crisis in Europe will emerge.

"This thing (sovereign debt crisis) is not going to be solvable," Nightingale added.

"The cause of the problem think they are the solution, they're not. The best thing to do would be to tell the politicians to stay well away."

He dismissed the latest market rally as nothing more than the latest in a string of rallies over the past two years based on little more than positive murmurs from policymakers.

"I am amazed this has gone on for so long. Each time they say 'we're close to a solution' the markets goes up a little bit and then when it's demonstrated that they are no where near a solution the market falls away again, that's the pattern," he said.

Comparing investors to the villagers in the popular children's story 'The Boy Who Cried Wolf' Nightingale said at least the villagers soon learnt that the boy was not telling the truth, but investors were taking too long to realise there was nothing tangible in the positive chatter from policymakers.

"The haircuts when they come will be frightful, there will be no private sector lending to Greece or any at risk country for years to come. This is no solution it very possibly makes things worse," he said.

He added that when the financial crisis took hold bad or failing banks should have been left to fail.

"We should not have saved the bad banks it was sheer and utter madness to do so. Let them go, pull the plug on them." There has been speculation that the euro region countries will need greater fiscal union if the currency is to survive.

"I'm 99.9 percent certain that the break up will occur," Nightingale said.

"There has never been a currency bloc in the history of the universe that has succeeded without political union, this one doesn't have that."