Greece will default within the next few months, predicts Geoffrey Davis, a Citigroup analyst.
"Citi feels that Greece will default at some point over the next several months," he told CNBC TV18 in Mumbai, India.
The upcoming G-20 meeting set for early November may produce a plan to resolve to the debt crisis, but it is uncertain how long real action happen.
"We will get some sort of announcement over a banking bailout mechanism. It's just a question of how long will it take us to get there," Davis said, adding that the Europeans have acted slower than expected.
EU leaders must act quickly to generate economic growth in order to avoid a recession, says Barry Eichengreen, an economics professor at the University of California. But so far, they’ve been making mistakes, he told CNBC.com.
The European Central Bank must cut interest rates, he said, saying its decision to increase rates earlier this year was a mistake.
The euro zone, he said, has a high probability of falling into another recession.
"The ECB remains slow to support growth. It needs to support growth and recognize inflation,” he said. "It is critical that European leaders deliver something here.”
The European Central Bank, he added, has done a poor job protecting Italy and France from bond market attacks.
While the G-20 will meet in November, G-20 finance ministers are meeting in Paris this week. Most experts, according to CNBC.com, don't expect them to reach a concrete solution.
Pessimism in Europe has caused currency volatility, Davis said. The Swiss felt compelled to caped their currency against the euro as investors poured into the Swiss franc. Plus, emerging market currencies fell.
"This is coming to an end quite quickly," Davis said. "Although we would be vulnerable to another big move higher in the dollar if the European crisis were to deteriorate over the next several weeks, the worst of the currency move has happened now."
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