Soros says the euro is a flawed construct

BERLIN Wed Jun 23, 2010 1:15pm EDT

U.S. billionaire investor George Soros waits to deliver a speech at the Humboldt university in Berlin, June 23, 2010. REUTERS/Tobias Schwarz

U.S. billionaire investor George Soros waits to deliver a speech at the Humboldt university in Berlin, June 23, 2010.

Credit: Reuters/Tobias Schwarz

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BERLIN (Reuters) - The euro is a flawed construct and Germany's budget savings policy is making it harder for other countries in the currency bloc to regain competitiveness, billionaire investor George Soros said on Wednesday.

Soros said the euro was an incomplete currency from the start as the European Union's Maastricht Treaty established a monetary union without a political union. "The euro is a patently flawed construct," Soros, who earned $1 billion in 1992 by betting against the British pound, said in the text of a speech for delivery at Berlin's Humboldt University.

He also criticized Germany's attitude toward the EU.

"By insisting on pro-cyclical policies, Germany is endangering the European Union. I realize that this is a grave accusation but I am afraid it is justified," he said.

"By cutting its budget deficit and resisting a rise in wages to compensate for the decline in the purchasing power of the euro, Germany is actually making it more difficult for the other countries to regain competitiveness," he added.

Soros called for Europe to grow its way out of trouble and to then revise and strengthen the structure of the euro.

"This cannot be done without German leadership," he said.

Soros added that the euro zone crisis "has a fiscal component and a banking component and the latter is just now approaching a climax."

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Comments (7)
STORYBURNfun wrote:
Soros is a flawed construct.

Jun 23, 2010 12:33pm EDT  --  Report as abuse
Gotthardbahn wrote:
If ‘flawed construct’ in reference to George Soros means the same thing as ‘fraud’ or ‘arrogant windbag’, then count me in too.

Jun 23, 2010 1:56pm EDT  --  Report as abuse
JWcalTX wrote:
Soros is of right about the euro but how can he then turn around and blame Germany for protecting Germans from the inherent weakness of the euro due of the unrestrained governments of other EU members. Secondly, this is all assuming that the grand EU experiment is good thing. I for myself am not sure that the brake up of the EU is not in the best long term interest of all countries involved.

Jun 23, 2010 2:26pm EDT  --  Report as abuse
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