The billionaire said that the EU may fall apart after the pandemic, when the unit will issue perpetual bonds to help more vulnerable members, such as, for example, Italy.
A coronavirus that emerged in China last year, stalled the growth of the world economy, as governments increased borrowing to a level unprecedented in world history.
George Soros said that the damage to the economy of the Eurozone will last longer than expected by most experts, adding that the rapid development of the virus means the complexity and duration of the process of finding vaccines.
The financier and founder of the eponymous Foundation believes that the perpetual bonds will allow the EU to survive.
“If the EU does not consider this option in the near future, it probably won't be able to survive the challenges currently facing the pandemic. This is not a theoretical possibility, but it is permissible tragic reality" — he said.
Soros, who gained fame by betting against the pound in 1992, said that major countries such as Germany, selling bonds with a negative yield, the eternal bond will ease a looming budget crisis around the block.
He believes that the EU will have to maintain your credit rating “AAA” to release the debt, and therefore should have the authority to raise taxes to cover the cost of the bonds.
the‘Easing the rules on state aid, which favour Germany, it was especially unfair to Italy, which was already weakened by a member of the Union, and therefore much stronger suffered from COVID-19" — said Soros.
Recall that George Soros escaped from Hungary when the Communists consolidated power in 1947 and appeared in the London School of Economics. the Fund received a huge profit in 1992 by betting that the pound sterling was overvalued against the German mark, which forced the British to pull out from the national currency mechanism European exchange rate.
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George Soros says EU may not survive crisis coronavirus (Reuters)
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