Rodgin Cohen: Outlook on Euro Zone Debt, US Taxes

Rodgin Cohen, M&A counselor and senior chairman at Sullivan & Cromwell, gave his outlook in a CNBC interview Thursday on two key economic issues — the U.S. reaching a deal on extending expiring tax cuts and Europe holding the line with Spain.

Cohen – who counseled Lehman Brothers on its bankruptcy and AIG on its $85 million bailout — described the euro zone debt crisis as “pressing."

But Cohen does not believe Spain will fall victim to the European debt crisis.

“The parallel has been to Ireland and I think that is just a false parallel,” said Cohen. “The two leading Spanish banks are strong banks — diversified, well-capitalized.”

In regard to the euro , the M&A counselor expressed confidence for the single currency.

“I do think it will make it. Obviously there is also a lot of uncertainty. Who knows where the next surprise will be,” said Cohen, adding, “But it would take something quite radical to change my view on this.”

Cohen also said reaching a deal in for extending the Bush-era tax cuts is imperative for the United States as a whole given the state of economy.

“I care less about what the compromise is than that there be a compromise,” said Cohen.

He added, “I think there is a lot of concern of whether our government can work effectively in an economy where we need an effective government.”