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Investor Soros blames Merkel for euro crisis

The Local · 12 Aug 2011, 11:07

Published: 12 Aug 2011 11:07 GMT+02:00

“It was the German indecision that intensified the Greece crisis and led to the contagion that has transformed it into an existential crisis for Europe,” Soros wrote in a guest commentary for the business daily Handelsblatt on Friday.

Soros, who has long criticised Europe’s handling of the crisis, called for the introduction of jointly backed eurobonds – a call that has been made by many economists but resisted by Germany.

He wrote that it had been a mistake to try to back up individual countries such as Greece via bailouts rather than strengthen the European Union as a whole. Germany now had to take the lead, he added.

“Otherwise the euro will collapse.”

The current system of rescue packages for individual counties such as Greece was unsustainable. It meant Italy and Spain had to pay higher interest for their state debt than they were receiving from Greece for the emergency credit they supplied.

Merkel’s policy of small steps was too slow, he said.

Merkel has come under fire from several quarters for staying on holiday even as the stock markets gyrated wildly and deep concern emerged over France’s creditworthiness.

“Stockmarket tremors, eurodrama: why is the Chancellor silent?” asked daily Bild this week.

Story continues below…

Merkel will meet on Tuesday with French President Nicolas Sarkozy in Paris to hammer out a new plan to tackle the euro crisis.

DPA/The Local/djw

The Local (news@thelocal.de)

Your comments about this article

11:40 August 12, 2011 by johnny108
"It was the German indecision that intensified the Greece crisis and led to the contagion that has transformed it into an existential crisis for Europe."

Soros isn't the sharpest knife in the drawer, is he?

It was Euro-zone fighting against German plans for Greece's recovery that led to the delay- NOT innaction on Germany's behalf!!

Why listen to the only economy in Europe that is recovering, after all?
12:39 August 12, 2011 by pepsionice
I'm trying to figure Soros out. You have the only economy somewhat thriving in Europe....being blamed for the current crisis? So the Soros logic is that everyone needs to run a failed economy? This kind of sounds like President Obama who kept trying to tell Merkel to run her economy like the US runs theirs....back two years ago.
12:43 August 12, 2011 by benjahmin
Its because Soros is scum and he WANTS everything to crash so he can by it up on the super cheap. Germany is not letting him do that so hes decided to go out and drum up a bit of fear: "Do as I say or the Euro will colapse!!!!" people need to wake up and realise that the dollar and the euro are screwed either way. Its either default (immediate pain, but less of it in long term) or continue with the bailouts (which solve the short term problem but make things MUCH worse in the long run). Stuck between the Soros and the deep blue sea.
13:57 August 12, 2011 by jg.
This would be the same George Soros of Black Wednesday fame, who made about a billion dollars by short-selling Sterling, thwarting the efforts of British, German and French central banks, who were spending their reserves (i.e. our reserves) trying to keep the Pound in the ERM.

It is probably safe to assume that, whatever George Soros says, it is designed to enrich George Soros, to everyone else's cost.

The only fix for the current problems is for all governments around the EU to reduce their borrowing to a level that they (or their citizens) can hope to pay back - some have done this, some have not.
15:01 August 12, 2011 by Lachner
The US Government blamed the German banks for having a big role in the US financial crisis of 2008. Now they are blaming Germany again for the collapse of the European Union. The US Government needs to pull their heads out of their butts, blame only themselves for the financial collapse of 2008 and then blame Euro countries like Greece, Spain, Italy and Ireland for not having a solid fiscal policy and spending control. The only country in the World that has managed to stay profitable and stable for the last 5 years has been Germany, so it is ridicule what these clown is claiming.

The US blaming Germany and pointing fingers to everyone else is absolutely ridiculous, when they just lost their credit rating status from S&P, the stock markets have collapsed and they are on the verge of defaulting their debt. Sure, the American Government sure knows how to run a country properly, so please give Germans advise on how to do things right.
15:09 August 12, 2011 by Michel_Berlin
Germany must have done something right if Mr. Soros is so angry!

Maybe Berlin disturbed some plans to get even richer with that crisis? Who knows...
15:13 August 12, 2011 by frankiep
George Soros is a market manipulator and criminal. He should be in a maximum security prison, not telling governments what they should and should not be doing. The economic situation in the world will only improve by holding scum like this accountable, not by continuing to give him a platform from which he can cause even more chaos.
15:18 August 12, 2011 by zeddriver
@lachner

Am I missing something here Lachner? Soros is not even a US citizen. Isn't he Greek? I think the local made it sound like soros is a representative of the US. But I do agree that the US government does need to improve it's way of doing business.

Glad to see that the forum posters on the local see him for what he really is.

In the US the far left worships this guy. As he says that he believes in socialism. And the government should run everything. But his actions say otherwise. He is the worst sort of capitalist there is. Hoping for and trying to finance the collapse of western democracies so he can buy them on the cheap and make himself richer in the process. Opposite of what the far left that he donates to believes in.
15:27 August 12, 2011 by finanzdoktor
I find Mr. Soros' comments interesting, but incorrect. He fails to address the underlying cause of the Euro crisis (excessive borrowing, falsified statistics, intra- and inter-governmental bickering, etc...), and instead of blaming all participants in it, blaming the one country that is not a entirely at fault.
16:28 August 12, 2011 by zeddriver
I apologize. Seems Soros is a naturalized citizen of the US from Hungary.

Still @Lachner, That does not make him an official spokesman of the US any more than the Taliban are official spokesmen for Muslims.
16:30 August 12, 2011 by odtaa
He's right. What is needed is something similar to the Marshall Plan after World War 2. Launch euro-bonds, based on the eurozone, not individual countries, and get the Chinese and others to buy the bonds.

If this was done when the crisis first happened then the speculators selling short would have been burned and burned badly and they would have left the euro alone.

If we don't get something like this then German and French banks, which own most of the Greek debt, are going to get hammered and this will cause a recession throughout Europe and possibly the collapse of the euro.
17:02 August 12, 2011 by Sastry.M
Sporting blame always since WW-1 Germany has been paying reparations well into the beginning of 21'st century. Now that the last such payments have been made conclusively in spite of all odds and blame the people faced during those difficult decades of national reconstruction and economic recovery I feel that others should appreciate the genuineness of German efforts to maintain E.U integration. Now they are 'in' to take the brunt of bailout support for inappropriate management of national economies of member E.U nations. This may be a far safer way 'out' falling back upon their own time tested Old World European wisdom considering population density and natural resources rather than fall ill to unrecoverable economic epidemics imported from the new Wild West World with no recourse to sustainable convalescence.

Strength of German economy is, after all, vested in prosperity of highly developed continental neighbors rather than speculative wealth of unknown future prospects enjoyed sinfully today with total disregard to divine purpose of human creation.
17:14 August 12, 2011 by noas
Soros is an Hungarian born Jewish survivor of WWII - currently a US citizen.
17:37 August 12, 2011 by ECSNatale
Hey George... stick to ruining other countries.. leave ours alone.
18:04 August 12, 2011 by rscott1220
Germany/Merkel must be doing something right as Soros only goes after you if you're to the right of him and even a little bit conservative!
18:38 August 12, 2011 by perfesser33
It's "nice" to see this rascal harass someone other than Americans for a change. You'll no doubt enjoy his "insight" as much as we do.
19:38 August 12, 2011 by lwexcel
It is so amazing to me that people call the previous actions of Germany indecisive. They were not indecisive...they knew exactly what they were doing!!! Germany is an exporting country, and used the opportunity to their advantage in order to increase demand of goods. The situation with Greece made the Euro weaker therefore allowing exporters to sell more products. The decision makers only acted to stop the situation when Germany's own financial stability came into question (investors were beginning to consider whether or not they should require higher interest rates to purchase German debt). This isn't some big secret for heavens sake. Go back and read the news articles from around that time and see that Germany came up with a decision within a week of their debt being placed in jeopardy. This isn't all roses and dancing around in gardens its business, and George Soros should know that better than anyone.
21:22 August 12, 2011 by puisoh
@ Lachner ..'the American Government sure knows how to run a country properly ..' let me share this one with you if you have not heard it.. The Amercians always get it right fter they have tried everything else.
00:53 August 13, 2011 by perfesser33
The quote is from Sir Winston, and it is probably truer than you think especially with our current administration. There's an old American farmers's version of this: If you throw enough manure against the barn wall, some is bound to stick.
15:19 August 13, 2011 by storymann
Soros is off the mark. Germany knows that these bailouts are fruitless and only a stop gap until a real solution can be agreed upon. The European Central Bank has been accepting what would normally be called junk debt as collateral. This in essence is a bending of the rules to maintain solvency.Once it becomes clear that Greece and Portugal are bankrupt, the bankruptcy of the ECB itself will be impossible to hide. The entire European monetary system rests on what is, by most definitions, a bad bank.
19:22 August 13, 2011 by derExDeutsche
Its becoming a trend to label any Govt. action someone disagrees with as 'inaction'.

Soros is a HUGE DBag. The picture of Liberal Hypocrisy
23:32 August 13, 2011 by Logic Guy
Well, Germany has obviously done better than most other nations, as far as recovering from the global, financial crash of 2008. I personally believe that the very best thing for the EU, at this point, is for the weak nations to "Slowly" evolve into independent nations. European banks appear to be wasting a whole lot of money, in their efforts to prop up Greece and other nations. Although the Euro would, perhaps initially take a small hit, however, the fact that it would actually become stronger in the future would benefit remaining EU nations.

"Based upon simple math, a thing becomes more valuable, as availability shrinks!"

I find it quite weird, that Europeans can't understand this.
18:53 August 14, 2011 by derExDeutsche
the man behind the curtain. the only reason Soros ever gives any sort of statement is to create political pressure. strategic fibs and misdirection are Soros' modus perandi .
19:47 August 14, 2011 by bugger
Merkel the smart physicist outwitted this criminal Shylock with her focus on preventing the speculative market players getting a opening. This criminal a modern day DR No with an ambition to rule the world through his "Open Society" network of organizations. He does his best to destroy nation states via currency manipulation or his network of NGOs working with terror, criminal groups in Middle East, Kosovo, South and East Asia.

Just made $10 B from betting against the dollar, has done the same to Pound and other currencies. Plus he is a close adviser to Obama.

He sure sounds like Dr NO and Ms Merkel the feminized version of 007.
22:29 August 14, 2011 by username112973
Comment removed by The Local for breach of our terms.
11:05 August 15, 2011 by lwexcel
Tea party members = talk a lot with very little to say.
22:57 August 18, 2011 by catjones
Ah, excuse me, but past german growth has been revised down and future growth is expected to halt. Smoke and mirrors. Bragging about standing in a puddle of blood and not getting your feet wet only lasts so long before the truth comes out. The EU will lead the way to the next recession, declare themselves blameless and point all fingers West.
22:02 November 7, 2011 by rraaccee
Eurobonds to bail out Greece? Are you kidding me? One thing Greece doesnʻt need is a eurozone-wide market expansion. Either take the horse out back, prop it up enough to catch up or let it die by attrition.

Soros is crazy to even imply Germany failed at swift action. What on earth does he want especially when the people of Greece arenʻt even willing to admit they or their government have done everything they can to get themselves into this mess.

I consider myself a European liberal but my god Soros has lost his marbles.
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