A Hampshire MEP has issued a stark warning over the EU.

Sharon Bowles MEP, who represents Hampshire in the European Parliament, has warned that there may not be a Eurozone come Christmas.

Speaking to a conference of mortgage industry leaders Ms Bowles, who also chairs the Parliament’s powerful Economic and Monetary Affairs Committee, said: “We are potentially facing the demise of the Euro by Christmas and if that happens it will wreck our economy.

“Contrary to what the Eurosceptics say, the issue now is not whether the UK remains in the EU but how we contain the Eurozone crisis.

“If the Euro breaks up, I think there will be rampant protectionism. Even if you get a smaller Euro with just the AAA countries huddling together they will still go down the track of protectionism.

“If the Euro breaks up then countries, including the UK, should work to save the EU, so that we continue to benefit from the Single Market and avoid a situation of every man for himself.

“We need something concrete and substantial next week from leaders. Promises and packing up for Christmas holidays will not do.”