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Europe has ‘three months’ to save euro, warns George Soros

by: Investment Week
  • 06/06/2012
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Europe has ‘three months’ to save euro, warns George Soros
Billionaire investor George Soros has told European leaders they only have three months to rescue the single currency.

Soros, speaking at a conference in Italy, said Greece was certain to elect a government that will abide by the austerity measures imposed by the European Union in this month’s elections, the BBC reported.

However, he said this would only provide a temporary respite, as the German public becomes less willing to bail-out its neighbours.

“The crisis is likely to come to a climax in the [autumn]. By that time, the German economy will also be weakening, so that Chancellor Merkel will find it even more difficult than today to persuade the German public to accept any additional European responsibilities. That is what creates a three-month window,” he said.

Soros criticised European leaders for failing to understand the “nature of the crisis”, which he described as “more of a banking problem and a problem of competitiveness”.

He said too much focus had been placed on debt levels and leaders had applied the wrong “remedy”.

“You cannot reduce the debt burden by shrinking the economy, only by growing your way out of it,” he added.

Soros was addressing the Festival of Economics in Trento, Italy.

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