Deloitte Monday Briefing: Five Euro Themes

The euro crisis has rumbled on into the summer. This week's note looks at how corporates are responding and draws on client conversations and discussions within Deloitte's euro crisis group.

• First, UK corporates see a growing risk that the single currency could break. In June, UK chief financial officers responding to the Deloitte CFO Survey said they saw a 36% chance that one or more country would leave the euro area before the end of this year, up from 26% in March. Financial markets have also been taking a more gloomy view. Economists at Citigroup recently assigned a 90% probability of Greece leaving the euro area in the next 12-18 months.
• Second, major UK corporates have stepped up plans for a breakup. The proportion of UK CFOs who say preparations in their businesses are at an advanced stage jumped from 18% in March to 28% in June. Last week IAG, the business that incorporates British Airways and Iberia, said it was drawing up plans to deal with the risk of