World Economy

Pro: Downturn increases odds that EU falls apart

Another round of QE... really?
Another round of QE... really?

Global strategist Komal Sri-Kumar echoes what investors like Dennis Gartman have said for awhile: Every day it's growing more likely that the Eurozone will break up.

On CNBC's "Street Signs," Sri-Kumar of Sri-Kumar Global Strategies said he wouldn't be surprised if a few years down the line, we're talking about the new Deutsche Mark.

Komal Sri-Kumar
Danny Moloshok | Reuters

"Clearly there is a problem in ," he said. "France and Italy are the EU's second- and third-largest economies and they are refusing to make the necessary structural changes. Both need structural labor reforms."

Unless changes are implemented and implemented soon, Sri-Kumar thinks a breakup is the most likely outcome.

In the past strategic investor Dennis Gartman, author of The Gartman Letter, has cited cultural differences as a powerful force that could drive a split.

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It should be noted, both pros concede that a breakup is far from inevitable.

However, Sri-Kumar believes the economic downturn, may compel the various member nations to take action. As things stand now, "I think there's 30 percent change of a break up in 3 years," he said.