Although not his central forecast, Mr Gabay said a euro break-up would hit Britain hard because “the policy cupboard this time is nearly empty”. To prevent the pound strengthening in a euro crisis, he said the Bank would have to launch a £1 trillion round of quantitative easing.
Sir John added that the Government will have prepared contingency plans “to nationalise the banking system, for example” and warned that a euro collapse would leave Britain vulnerable to an attack from the markets. Speaking about the UK, he asked rhetorically: “If you think Europe’s going down the plughole, who’s next?”
http://www.telegraph.co.uk/finance/financialcrisis/9441120/Eurozone-break-up-would-trigger-1-trillion-of-QE-see-banks-nationalised-and-deep-recession-warns-Fathom.html
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