Outgoing World Bank president, Mr Robert Zoellick, warned that Europe was facing a “Lehman moment” and the collapse of the euro currency could trigger a global crisis, in an interview out on Sunday.
Mr Zoellick will warn the G20 summit that Europe risks sparking a financial meltdown that would have desperate consequences for developing countries, he told British newspaper The Observer.
“Europe may be able to muddle through but the risk is rising,” the 58-year-old American said.
“There could be a Lehmans moment if things are not properly handled.”
The 2008 collapse of US financial services firm Lehman Brothers — one of Wall Street’s most prestigious firms — after its risky bets on the US housing market soured, sparked global financial panic.