Soros says EU break-up would be catastrophic - reports

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Fri Jan 6, 2012 5:05am GMT

(Reuters) - A collapse of the euro and break-up of the European Union would have catastrophic consequences for the global financial system, billionaire investor George Soros was quoted as saying.

"Today, the euro is potentially endangering the political cohesion of the European Union," the Business Line newspaper cited Soros as saying in the south Indian city of Hyderabad.

"If the common currency were to break down, it will lead to the break up of the European Union itself. And this will be catastrophic not only for Europe but also for the global financial system."

The euro zone crisis is "more serious and more threatening than the crash of 2008," the Economic Times reported, quoting Soros.

In the near term, some of the euro zone countries may have to take more austerity measures because of the imbalances between the "creditor and the debtor countries," Soros said at a business school event, the Mint newspaper reported.

"Unfortunately, they haven't yet solved the acute financial crisis and that is causing the situation to deteriorate...and (it) is not at all clear it will have a solution," he said.

(Writing by Sumeet Chatterjee in MUMBAI; Editing by Ranjit Gangadharan)
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Comments (4)
r.mutts wrote:
“The Wall Street Journal previously reported that George Soros’ fund was a buyer of securities sold by MF Global, scooping-up some of its European sovereign debt at a deep discount. Panic among investors and clients about MF Global’s $6.3 billion bet on European sovereign bonds led to its demise.”

Jan 06, 2012 5:36am GMT  --  Report as abuse
mgb500 wrote:
A break up of the Greater European 4th Reich may not make the banks happy – but it would break the shackles hobbling the nations that have been subsumed into the Empire…and that would be no bad thing – being free is better than being rich…neither of which happen under the diktat of Brussels!

Jan 06, 2012 5:51am GMT  --  Report as abuse
JenkinsComp wrote:
Soros should try living and voting in Europe if he wants to continually comment on it. The Media and Politicians publish and listen to this non-domiciled expat (who made his fortune from other people misfortune – shorting the Pound) more than their own electorate; perhaps that is why the EU is in the mess it is in. People in Greece and Italy are now governed by unelected leaders in their own country, as well as at EU level so a vote is not that easy thing to get.

A break up might be bad for Soros’ Billions-Under-Management, hence his selfish comments, but for citizens with the misfortune to live in a EU country, a break up of the worlds largest ponzi fraud and political gravy train and a return to democracy is the only sensible and viable path to take.

Jan 06, 2012 8:12am GMT  --  Report as abuse
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