Soros' Countdown to EU Armageddon: 3 Days
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Billionaire investor Geroge Soros made a dire prediction about the situation in the eurozone today. Soros, famous for being a brilliant investor and something of a guru, said that unless officials in Europe take the necessary steps to solve the crisis in the next three days, then the summit will turn out to be a "fiasco" and ultimately "fatal" to the European union.
His comments came during an interview with Francine Lacqua of Bloomberg TV, where he weighed in on the ongoing difficulties leaders in Europe are having managing a financial crisis that threatens to splinter the European Union.
"Basically there is an interrelated problem of the banking system and the excessive risk premium on sovereign debt - they are Siamese twins, tied together and you have to tackle both," he said. "It's the beginning of a banking union and there is a disagreement on the fiscal side and unless that is resolved in the next 3 days then I am afraid that the summit could turn out to be a fiasco, and that could be fatal."
Soros believes Germany is doing Europe a disservice by standing in the way of fiscal reforms. The tragedy of it all, in his view, is Angela Merkel is acting in good faith, but she is leading Europe in the wrong direction. Instead of an open society -- if it survives -- the EU will be "transformed it into a hierarchical system where the division between creditors and debtors would become permanent... It would lead to Germany being in permanent domination. It would become like a German empire, and the periphery would become permanently depressed areas."
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His comments came during an interview with Francine Lacqua of Bloomberg TV, where he weighed in on the ongoing difficulties leaders in Europe are having managing a financial crisis that threatens to splinter the European Union.
"Basically there is an interrelated problem of the banking system and the excessive risk premium on sovereign debt - they are Siamese twins, tied together and you have to tackle both," he said. "It's the beginning of a banking union and there is a disagreement on the fiscal side and unless that is resolved in the next 3 days then I am afraid that the summit could turn out to be a fiasco, and that could be fatal."
Soros believes Germany is doing Europe a disservice by standing in the way of fiscal reforms. The tragedy of it all, in his view, is Angela Merkel is acting in good faith, but she is leading Europe in the wrong direction. Instead of an open society -- if it survives -- the EU will be "transformed it into a hierarchical system where the division between creditors and debtors would become permanent... It would lead to Germany being in permanent domination. It would become like a German empire, and the periphery would become permanently depressed areas."
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