A recession in Europe could lead to the collapse of the eurozone, as the single currency would buckle under the political turmoil unleashed by a fresh downturn, a leading investment bank has warned.

In a research note titled "Close to the edge", economists at Swiss bank Credit Suisse warned the fate of monetary union hangs in the balance if Europe's policymakers are unable to ward off another global slump and quell anti-euro populism.

"The viability of the euro is contingent on the current recovery," said Peter Foley at Credit Suisse.

"If the euro area were to relapse back into recession, it is not clear it would endure."

Although the bloc's nascent recovery was likely to persist in the coming months, Credit Suisse said there were worrying signs of deterioration emanating from Europe's economies. These included an industrial slowdown, heightened credit stress in the banking sector and market volatility.