GETTY Joseph Stiglitz claims the European Union is about to collapse as financial doom beckons

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Joseph Stiglitz thinks Brexit changed the face of the Eurozone, leading to overt criticism of the common currency and making the overall break-up of the Union more likely. Italy could prove to be the next nation to leave the Brussels bloc, according to Mr Stiglitz, a former chief economist at the World Bank and senior advisor to president Bill Clinton. The country’s banks are weighed down by more than £300billion of bad debt but cannot be bailed out under EU rules unless creditors take a financial cut first. Embattled prime minister Matteo Renzi says he will resign if he loses the October referendum on constitutional reform, which could allow the anti-establishment Five Star Movement, which has promised the public it will hold a vote on whether or not to remain in the Euro.

The expert says an “amicable divorce” must be considered to avoid a “political cataclysmic event like Brexit”. In his new book, 'The Euro: How A Common Currency Threatens the Future of Europe' Stiglitz also advises Germany and Greece should pull out as member states. Mr Stiglitz said: “In other words, the Eurozone’s member countries are democracies and one sees increasing hostility to the Euro, which is unfortunately spilling over to a broader hostility to the broader European project and liberal values. “That’s going to be the end.”

GETTY The Euro could soon be a thing of the past as Italy could vote to dispose of it

GETTY Greece saw riots on the streets after their disastrous Euro collapse

Despite only coming into operation in 1999, the quality of the Eurozone has been called into question on numerous occasions, especially following the Great Recession. Eurozone countries were not able to devalue their currency to remain competitive on the international market during the crisis, meaning the ever closer union with member states had terrible consequences for the financial state of the continent. Mr Stiglitz said: “What’s going to happen is that there will be a definite consensus that Europe is not working. "The diagnosis will be to shed the currency and keep the rest, or that Europe is not working and a broader rejection — like in the UK. "So my worry that this is precisely that kind of political event (something like Brexit) is that is what will be the catalyst for change."

And it could well be from Itlay. Mr Stiglitz said: "That is a big risk. "Many people are now trying to work with Matteo Renzi [Italy's prime minister] to have him climb down from his commitment that he will resign if his referendum fails." Stiglitz gave his warning as leaders of the EU's three biggest countries met for crisis talks in Lazio to discuss saving the Brussels project from unravelling after Brexit. Italian Prime Minister Mr Renzi invited German Chancellor Angela Merkel and Francois Hollande to Ventotene, a tiny island off the coast of Naples, to discuss their strategy ahead of next month's summit of all nations.

Brexit aftershocks: Who's next to leave the EU? Wed, September 14, 2016 Britain has voted to leave the EU. So who's next? We look at which European countries want to hold their own EU referendum. Play slideshow Express 1 of 10 Frexit, Nexit or Auxit? Who will be next to leave the EU