Home > Uncategorized > George Soros: Germany should back growth or leave euro – Telegraph

George Soros: Germany should back growth or leave euro – Telegraph

September 10, 2012 Leave a comment Go to comments

Soros said the plan would likely buy Europe “a longer period than previous measures that were taken.” “It’s a more dramatic move,” he added, but he predicted that Spain and Italy would not apply to be part of the program.

What Europe needed more was some form of common euro zone bond, which was currently not acceptable to Germany.

“Secondly it needs to be able to grow, you need a growth program, and that is again not what Germany is imposing on Europe,” Soros said.

Soros, 82, drew a parallel with the financial crisis of 1982, when lenders protected the international banking system by lending debtor countries just enough to service their debts, pushing them into severe austerity programs that led to depression.

“It was the lost decade for Latin America and something very similar is happening now in the euro situation, where Germany is actually playing the same role within the euro as the IMF did within the global financial system,” Soros said.

“This policy is pushing Europe into a depression which is going to last five or 10 years.”

Elaborating on an essay published on Saturday on the New York Review of Books website, Soros said such a scenario put at risk not only the euro currency but the whole European Union, ending a decades-long project to unite the continent.

He will give a speech entitled “The Tragedy of the European Union” in Berlin on Monday.

Soros’s Cayman Islands-based Soros Fund Management has around $25 billion in assets. Soros himself is worth about $20 billion, according to Forbes.

via George Soros: Germany should back growth or leave euro – Telegraph.

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