The situation facing European countries like Greece and Portugal is directly comparable to the economic crisis which hit Latin America in the late 1990s, Andy Brough, co-head of Schroders’ Pan European Small and Mid Cap team, told CNBC Wednesday.
"I get the feeling we're having an Argentinean re-run," Brough said. "In Europe, they've tried everything to sustain the system but it's unsustainable."
Argentina, together with the region's largest country Brazil and with Uruguay, suffered a sustained economic crisis last decade after building up a huge debt pile.
Argentina in particular continued to borrow heavily from the International Monetary Fund (IMF) without repaying its debts.
"In the end the populace is going to say we didn't go into the euro for this," the Schroders fund manager said.
Fernando de la Rúa, then president of Argentina, had to flee the country in a helicopter after the unrest grew. While the political situation in Greece and Portugal is not yet that serious, there have been widespread protests on the streets of Athens against austerity measures demanded by the ECB and IMF as part of a second bailout of Greece.Page 1 of 2 | Next Page