Europe has 3 months to save euro: Soros

“In my judgment, the [European] authorities have a three months’ window during which they could correct their mistakes and reverse the current trends,” The Economic Times quoted Soros as saying during an economic festival in Trento, Italy.

The Hungarian-American investor stressed that the eurozone financial crisis would reach a climax in the fall of this year, when the German economy would also decline so that German Chancellor Angela Merkel “will find it even more difficult than today to persuade the German public to accept any additional European responsibilities.”

“That is what creates a three months’ window,” he added.

Soros also said that the austerity measures imposed in the eurozone have had a catastrophic effect on the global economy.

He then slammed the European authorities for failing to understand the nature of the euro crisis as “they thought it is a fiscal problem while it is more of a banking problem and a problem of competitiveness.”

Accordingly, the authorities applied “the wrong remedy,” since they could not decrease the debt through shrinking the economy, but only by growing their way out of it, Soros concluded.


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