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And the euro currency hit a two-year low against the dollar.
"Growth will be squeezed by austerity measures and the euro currency will be weak".
The news intensified fears over the euro currency union's ability to cooperatively resolve its problems.
But Britain's absence from the euro currency and the Schengen zone made this a nonstarter.
For example, Hungary is in the European Union, but it does not use the euro currency.
The Italian economy is one of the hardest-hit in the euro currency union.
It could also convert euro currency in the country at the same rate.
Top of the list is Greece's potential exit from the euro currency.
Britain is indeed a member, although it does not use the euro currency.
That could prompt Greece to leave the euro currency union and default on its debt.
He added that the resignation news "exacerbated" concerns about the euro currency zone.
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