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Euro Zone Must 'Stick Together': Analyst

There is a 'low probability' that the euro zone will break up because the costs to debtors and creditors are just too large, Philip Poole, Global Head of Macro and Investment Strategy at HSBC Global Asset Management told CNBC Monday.

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"There is a lot of speculation about it but in reality it's much more sensible in both cases to stick together and take the medicine if you're Greece and provide the funding if you're Germany," Poole said.

Stephen Gallo, Head of Market Analysis at Schneider Foreign Exchange, told CNBC that the possibility of a euro break up was still a threat.

"I think euro break up trades are there. It is just that no-one knows how a euro break up will play out. It is very difficult to see exactly where these break up trades are fitting in," Gallo said.

Poole was dismissive of the efforts made so far by European politicians to resolve the debt crisis.

"Politicians have been behind the curve, they have announced initiatives without the detail and we are in that situation again. We really don't even have a path to a solution that's mapped out," Poole added.

German Chancellor Angela Merkel and French President Nicolas Sarkozy meet Monday to kick off 2012's round of EU summits aimed at resolving the European debt crisis.

They are expected to discuss the details of the proposed fiscal union between euro zone states.

The euro currency, which has taken the hit as the debt crisis has spread across the euro zone region unabated and fears of a recession this year spread, has fallen in recent sessions to 16-month lows against the dollar and sterling.

Gallo believes that even if Greece left the euro – voluntarily or involuntarily – the euro zone could be left stronger after initially suffering.

He added the euro had taken time to weaken because the succession of EU summits in the latter part of 2011 had held it up.

"The level of distress in the euro region, and the level of aversion to the euro, is so high at the moment that only something like eurobonds - an explicit move towards fiscal union - would be likely to push the euro up sustainably," Gallo said.

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