The Euro could encounter problems in 2019 if forthcoming elections hit financial ties between Germany and Italy , according to Hudson Institute economist Brendan Kelly . He said if the coalition government in Germany fell it would raise questions about the country ’s financial supplies to Italy , vital to stemming the latter country ’s falling markets and rising debts . The end result suggests a risk the single currency could peak mid-year before possibly declining in H2. More anti - establishment populist governments taking power could create greater protectionism , he warned . The US may also pressure the European Central Bank to raise the Euro ’s deficit . He said the Euro could peak in the middle of 2019 , then fall , as a result .
The Euro could encounter problems in 2019 if forthcoming elections hit financial ties between Germany and Italy , according to Hudson Institute economist Brendan Kelly . He said if the coalition government in Germany fell it would raise questions about the country ’s financial supplies to Italy , vital to stemming the latter country ’s falling markets and rising debts . More anti - establishment populist governments taking power could create greater protectionism , he warned . The US may also pressure the European Central Bank to raise the Euro ’s deficit . He said the Euro could peak in the middle of 2019 , then fall , as a result .