George Soros: Country Leaving Euro Currency 'Probably Inevitable'

VIENNA - Billionaire investor George Soros thinks a country will eventually exit the euro zone and urged policymakers on Sunday to come up with a "plan B" that could rescue the European Union from looming economic collapse.

Soros, famous for making $1 billion by betting against the British pound in 1992, did not name any country he thought might exit the currency, but speculation is mounting about the fate of Greece as its politicians struggle to agree more austerity measures demanded by international lenders as the price for staving off bankruptcy.

Soros reiterated his view in a panel discussion in Vienna that the euro had a basic flaw from the start in that the currency was not backed by political union or a joint treasury.

"The euro had no provision for correction. There was no arrangement for any country leaving the euro, which in the current circumstances is probably inevitable," he said.

While he called survival of the European Union a "vital interest to all," he said the EU needed structural changes to halt a process of disintegration.

"There is no plan B at the moment. That is why the authorities are sticking to the status quo and insisting on preserving the existing arrangements instead of recognizing there are fundamental flaws that need to be corrected."

With a debt crisis in some peripheral members testing the EU's cohesiveness at a time of popular disquiet in wealthier countries over bailouts, he said leaders had to adopt measures now to remedy the situation.

"Let's face it: we are on the verge of an economic collapse which starts, let's say, in Greece but could easily spread. The financial system remains extremely vulnerable...

"We are on the edge of collapse and that is the time to recognize the need for change."

Some steps the EU could adopt included creating a larger central budget; directing some of the income from value-added tax or a levy on financial transactions to Brussels; having a European institution guarantee banks, and tripling the size of its bailout fund by topping it up with tax revenue, he said.

(Reporting by Michael Shields; editing by Sophie Walker)

Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[DogsLieMovie]

10:09 AM on 06/28/2011

George Soros should know a lot about this. It was the enormous weight of his fungs shorting the British pound that resulted in the pound being ejected from the EMS. Its much easier to influence the direction of less liquid currencies ..think Malaysia.

[xtralucke1]

08:03 AM on 06/28/2011

OH WAIT I FORGOT YOU CANT DIE YOUR GOD.

[xtralucke1]

08:02 AM on 06/28/2011

What are you up to GEORGE? Looking to make another billion on the backs of hard working people are you? What country are you taking down next? I know the US is your prize but we americans arent as gulible as the rest of the world. DIE ALREADY GEORGE.

[vobox3343]

09:11 AM on 06/28/2011

For people who bend over backwards for the elite and back the you-don't-have-to-pitch-in-to-help-the-people-just-donate-to-us mantra of the Republicans, your bias appears partisan. That's kinda crazy. I bet Soros, like many other wealthy Democrats, don't mind if their taxes are raised to help our nation in its time of need.

[Andman0121]

02:22 PM on 06/28/2011

lol stop watching Beck immediately and develop your own opinion.

[SisterAnn]

07:54 AM on 06/28/2011

Soros is hated by many because he is a big democratic doner.

They focus on him because he isn't the usual rich republican.

[kasv]

08:04 AM on 06/28/2011

Aaaaah, yes. If he donated to republicans and their causes, they would worship him as they do the koch bros.

[brit prof]

02:43 AM on 06/28/2011

"Soros, famous for making $1 billion by betting against the British pound in 1992, did not name any country he thought might exit the currency ..."

What a thoroughly nasty piece of work he is. All he's interested in is making a fast billion (how much money does a man a hop, skip and a jump away from death even need?). He's a smash-and-grab artist and no doubt wants to spin financial stories one way or t'other in order to cash in on the fallout while the ordinary person gets to deal with the misery.

As Lennon once asked, "How do you sleep at night", George?

[automan 57]

01:40 AM on 06/28/2011

George Soros; A truly sad reality for this man is with all his money you never see him happy, or content. Feels superior to everyone else because he has money, thinks this money and his ideas will improve the world. Shame he has such grand ideas. Many good organization world wide he could help, but won't. Gotta be the star attraction.

[brit prof]

02:45 AM on 06/28/2011

Somewhere in his heart of hearts, perhaps he is disgusted by the way he has made his money. Maybe that keeps him up at night.

On second thoughts, I doubt it.

[Polpotski]

08:38 PM on 06/27/2011

Funny how about everybody has a plan on how to spent the German tax payers money. The end of all this is here ,when The German people are fed up and finally say no to being stolen from.

[brit prof]

02:46 AM on 06/28/2011

One of Germany's biggest problems stems from the one-to-one swap for the East German mark after unification. The true value was several times that.

[JoAnn Kennedy]

06:52 PM on 06/27/2011

Wouldn't surprise me if the spooky dude just made sure Greece goes into default to just move things along in his favor.

[JoAnn Kennedy]

06:30 PM on 06/27/2011

There has been speculation for months that Germany the strongest economy in the world right now, is poised and ready to bring back the mark rather than the Euro. The german mark is already in circulation and the german people favor it over the euro. After awhile, the mark may replace the soverign dollar as the soverign currency. Go ahead Benny bring on QE 3 you jerk

[gomezrules]

04:46 PM on 06/27/2011

George Soros making economic 'suggestions' is like encouraging parents to leave their kids in the care of the local pedophile! It's too creepy to contemplate..

[happyone6470]

04:06 PM on 06/27/2011

This man scares me. He doesn't have our best interests at heart .

[JoAnn Kennedy]

06:34 PM on 06/27/2011

yes the Spooky Dude gives me a creepy feeling as well. HE is, his own best interests. REmember he bet against the Bank of England and did everything in his power to bring it to it's knees. He had a fabulous upbringing in Nazi Germany, and learned alot of sneaky tricks. You are a product of the environment you are raised in.

[Greg Mirsky]

08:10 PM on 06/27/2011

I'm not a fan of Mr.Soros but believe that arguments must be correct if one wants to maintain moral level of the discussion. Mr.Soros lived in Hungary during the WWII and Hungary was an ally of the Nazi Germany for the most of that period. During that period the Regent Miklós Horthy's regime can be characterized totalitarian and nationalistic. In March of 1944 Germany occupied Hungary, put Admiral Horthy under house arrest and install government of Döme Sztójay. It was then when mass deportations of Hungarian Jews were planned and conducted under command of Adolf Eichmann. In less than a month 437000+ were deported, mostly to Aushwitz. Only in August of 1944 when Sztójay was replaced by Géza Lakatos deportations stopped as new prime minister ordered Hungarian gendarmes to resist deportation of any Hungarian citizen. And Germans didn't want to fight over that. But in September of 1944 fascist Ferenc Szálasi, leader of the Arrow Cross, became Prime Minister and resumed deportations of Jews. When he realized that German transport system is not functioning he unleashed Arrow Cross paramilitary units onto Jewish population.

[Greg Mirsky]

08:10 PM on 06/27/2011

Why I took the story to such length? First, to demonstrate that Na zi Germany did not contributed to Mr.Soros's upbringing. Mr.Soros formative years were during difficult and tragic period in Hungarian history and more so in history of Hungarian Jews (where his family viewed themselves as Jewish was immaterial as the definition was done based on so-called Jewish Laws). Secondly, Mr.Soros as everyone tried to survive and I don't know if you have moral ground to judge him for surviving. Whatever he has done he, I believe, will answer for but not to me, you but to Him. When? How should I know.

[wgpbp]

03:46 PM on 06/27/2011

I would recommend the following article. Quantitative Easing 2 (QE2) is scheduled to eand this week. Given that iseems the $600 Billion most likely went (ended up) going to shore up European Banks - - - -Makes you wounder who is really "holding the bag" here.

It's a good read and makes you think. Who is really holding the European risk?

http://drakeplaintalkplanning.wordpress.com/2011/06/25/qe2-the-failure-the-hoax-the-cost/

[GeorgieGirl9]

02:38 PM on 06/27/2011

Poor George, doesn't like seeing his one world order teetering on the brink of failure.

[dleonp0770]

02:33 PM on 06/27/2011

who cares

[theroundearth]

02:25 PM on 06/27/2011

Any idea why the crashing euro is worth 1.428 US-dollars today?

At the time of its introduction in January 1999 the euro was worth $1.18. Fell to a low point of $0.90 in 2001. Has all of this been a Soros' machination?

[Swordfishtrombone]

02:47 PM on 06/27/2011

Ow... have you been watching Glenn Beck again?

[theroundearth]

03:29 PM on 06/27/2011

No. I've just been reading the authoritative comments over here...

[JoAnn Kennedy]

06:55 PM on 06/27/2011

Read Financial Times UK, or the Guardian UK or here's one for you if you can read it Der Spegial, or Le MOnde -- gives you a whole new perspective on the global financial picture.

[oilfield]

03:31 PM on 06/27/2011

goes to show you the crashing usd.