George Soros Says Europe Is Not Going to Disintegrate Description video: Soros Fund Management Chairman George Soros discusses the danger of the disintegration of the European Union and why the principles of open society need defending. George Soros warned of […]
George Soros Says Europe Is Not Going to Disintegrate
Soros Fund Management Chairman George Soros discusses the danger of the disintegration of the European Union and why the principles of open society need defending.
George Soros warned of the possible collapse of the European Union
The billionaire said the EU could fall apart after the pandemic if the block does not issue perpetual bonds to help more wounded members of the union, such as, for example, Italy..
Coronavirus, which emerged in China last year, stalled global economic growth as governments ramped up borrowing to levels unseen in world history.
George Soros said the damage to the eurozone economy will last longer than most experts expect, adding that the rapid development of the virus means the complexity and length of the vaccine search process.
Financier and founder of the fund of the same name believes that perpetual bonds will allow the EU to survive.
«If the EU doesn’t consider this option soon, it probably won’t be able to weather the challenges it currently faces due to the pandemic. This is not a theoretical possibility, but a perfectly acceptable tragic reality.», – he thinks.
Soros, who rose to prominence by betting against the pound sterling in 1992, said that with large countries like Germany selling negative-yield bonds, the perpetual bonds would ease the looming budget crisis across the block..
He believes the EU will have to maintain its credit rating «AAA», to issue such debt, and therefore must have tax collection powers to cover the value of the bonds.
«The weakening of government aid rules that favor Germany was especially unfair to Italy, which was already a weakened member of the union and therefore much more affected by COVID-19.», – Soros believes.
Recall that George Soros fled Hungary when the communists consolidated power in 1947 and ended up at the London School of Economics. His fund made huge profits in 1992 by betting that the pound sterling was overvalued against the deutsche mark, which forced the British to pull the national currency out of the European exchange rate mechanism..