World Class Destabilizer, George Soros, Urges Germany To Bail Out Of EU

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The warning said the euro is on the verge of a collapse that could drag Europe into conflict

By Alison Little

THE euro is on the verge of a collapse that could drag Europe into conflict, billionaire financier George Soros warned yesterday.

The veteran investor said massive budget cuts proposed by Germany could destabilise the European Union by dragging down its neighbours’ economies.

He said: “German policy is a danger for Europe. Unfortunately, a collapse of theeuro and the European project cannot be ruled out.

“That would be tragic because then Europe would be threatened by the sort of conflicts between states that have shaped European history.”

Mr Soros added his voice to suggestions that Germany might do better to abandon the troubled eurozone, which is struggling to survive the Greek debt crisis and speculation about the economic health of other members, including Spain.

The German government aims to save about 80 billion euros (£66.5billion) between next year and 2014 by slashing welfare spending, cutting the public sector workforce and reducing subsidies.

But Hungarian-born Mr Soros warned: “The Germans are dragging their neighbours into deflation, which threatens a long phase of stagnation.

“That leads to nationalism, social unrest and xenophobia. Democracy itself could be at risk.”

Stephen Booth of the think-tank Open Europe said: “Germany understandably wants to maintain control over its economic policy but this crisis has shown that being part of the single currency involves huge responsibilities to the other euro countries, something which politicians didn’t tell their citizens when they signed up to the euro.”