Chief economic advisor Kaushik Basu has warned that if the Eurozone breaks up finally, it will be more disastrous than the 2008 global financial crisis triggered by the fall of the Wall Street banks, from which the global economy is yet to recover. "If Europe does slip into a crisis, it is going to be a very difficult time. There is no escaping from that.
Though we (government and the Reserve Bank) have a team that is working on different scenarios, to see how we will react, it will be a lie to say that we have the strength to weather that. It will hit us in the face," Basu told an Exim Bank organised here over the weekend.
Stating that a deeper European crisis was not impossible, he said there would be a jolt and it could spin Europe into a big crisis. "It is going to be a difficult one or two years for the world for sure."