Euros (2)

There are growing concerns that the eurozone is heading for a new financial crisis, a senior German adviser has warned.

Dr Lars Feld, a member of the German Council of Economic Experts, was one of the first economists to suggest the eurozone would slow down last year.

The German government has forecast growth of 0.5% for 2019, having predicted growth of 1.8% just a few months ago.

Speaking to the BBC, Dr Feld has raised concerns about the state of the Italian economy, which is struggling to avoid recession amid huge government debt.

Dr Feld said: "The banking system in Italy is not as safe as we might hope for. There is the potential for contagion, in particular, from the Italian banking system to other banking systems.

"And in the first place from the Italian government to the entire banking system."

He added: "This might look like a new euro crisis".

The Italian government's debt stands at around £2 trillion and its budget plan suggests there is no sign of it falling.

Meanwhile, Dr Feld also raised concerns about the German economy. The car industry suffered after new emissions standards hit car sales, and severe drought on the Rhine impacted the transport of goods. Germany has also been hit by the trade war between the US and China.