Notable investor and businessman George Soros has commented in the World Economic Forum that the debt crisis in the euro zone is not going to end soon. He pointed out that Europe is currently divided into two economic blocks and the economically stronger countries comprising of Germany and France are ahead of the weaker nations like Romania by miles. This split can very well take its toll on Europe. He virtually echoed the opinion of Nouriel Roubini who recently said that the debt crisis, instead of being over, is going to spread to the other parts of the continent.
Both Roubini and Soros agree that even though the International Monetary Fund and the European Union has pumped €750bn to end the crisis, it might just not be enough. Meanwhile, the European Union leaders are feeling the heat as people are expecting them to come up with a solution. Nicholas Saracozy, president of France as well as Angela Merkel, the German Chancellor, held conferences to reveal their strategies to combat the crisis.
Meanwhile, Soros blames the euro for the crisis. He said that the destiny of euro was very doubtful from the very beginning. Though the euro was backed by a common central bank, it had no common treasury. The result has been a continent with sharp economic division. This can have a profound impact on the political stability of Europe. Soros also added that the euro, though weak, will not fade into oblivion because France and Germany will back it. Therefore, the pragmatic step is to boost the euro in countries where it is struggling. For this, the economically stronger nations will have to take care of the countries which have been left behind in terms of development.
A lot of people are actually skeptical about the future of the euro. A recent survey revealed that a considerable number of investors believe one or more countries will dump the euro within five years. Even if the debt issue stabilizes a bit for the time being, the condition of the euro won’t improve if the basic problems are not addressed.
Soros is concerned that the debt crisis in the continent can spread to other parts of the world as well. He highlighted the contraction of the economies in certain countries can result in social upheaval, as people react to austere fiscal policies and no apparent solution is visible. The greatest challenge right now is to get the European economy back on its feet again and try to bring about uniform economic growth.
Source: www.newjerseynewsroom.com
Both Roubini and Soros agree that even though the International Monetary Fund and the European Union has pumped €750bn to end the crisis, it might just not be enough. Meanwhile, the European Union leaders are feeling the heat as people are expecting them to come up with a solution. Nicholas Saracozy, president of France as well as Angela Merkel, the German Chancellor, held conferences to reveal their strategies to combat the crisis.
Meanwhile, Soros blames the euro for the crisis. He said that the destiny of euro was very doubtful from the very beginning. Though the euro was backed by a common central bank, it had no common treasury. The result has been a continent with sharp economic division. This can have a profound impact on the political stability of Europe. Soros also added that the euro, though weak, will not fade into oblivion because France and Germany will back it. Therefore, the pragmatic step is to boost the euro in countries where it is struggling. For this, the economically stronger nations will have to take care of the countries which have been left behind in terms of development.
A lot of people are actually skeptical about the future of the euro. A recent survey revealed that a considerable number of investors believe one or more countries will dump the euro within five years. Even if the debt issue stabilizes a bit for the time being, the condition of the euro won’t improve if the basic problems are not addressed.
Soros is concerned that the debt crisis in the continent can spread to other parts of the world as well. He highlighted the contraction of the economies in certain countries can result in social upheaval, as people react to austere fiscal policies and no apparent solution is visible. The greatest challenge right now is to get the European economy back on its feet again and try to bring about uniform economic growth.
Source: www.newjerseynewsroom.com
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