Nouriel Roubini, professor of economics at New York University famous for predicting 2008 global crisis, says that Greece’s debt to GDP ratio is at “level of insolvency”, so the restructuring of the country’s debt seems inevitable. The same outcome is possible for Portugal’s and Irish banks’ debt.

Roubini thinks that Ireland’s government rescue package designed to finance national saving banks may deepen the country’s debt crisis.

The economist also claims that ECB may raise benchmark rate 50-75 basis points this year. In his view, in 2012 the borrowing costs in the euro area may reach 3%.

According to Roubini, the deviation in the monetary policy between the Federal Reserve and the European Central Bank may be quite destabilizing for financial markets.