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Soros: Merkel has three months to save euro

The Local · 4 Jun 2012, 10:51

Published: 04 Jun 2012 10:51 GMT+02:00

"In my judgment, the authorities have a three months' window during which they could correct their mistakes and reverse the current trends," Soros said Saturday at an economics conference in Trento, Italy, naming those authorities as Germany and the Bundesbank, the German Central Bank.

"In a crisis, the creditors are in the driver's seat and nothing can be done without German support," he said, noting that public opposition to austerity in the eurozone "is likely to grow until the policy is reversed."

He said there were still plenty of opportunities to save the euro, but it would require the active support of Merkel and the Bundesbank. But he warned that if the opportunity were not taken, Europe would be threatened with a "lost decade."

Greece is heading to the polls for a second time in six weeks after an inconclusive vote on May 6. And with the radical leftist Syriza party, chief opponent of a massive EU-IMF bailout accord, tipped to win this time, the election could lead to Greece quitting the single currency.

"I expect that the Greek public will be sufficiently frightened by the prospect of expulsion from the European Union that it will give a narrow majority of seats to a coalition that is ready to abide by the current agreement," Soros said, referring to June 17 polls in the debt-stricken state.

The "crisis is liable to come to a climax in the fall" of the year, he said.

"By that time the German economy will also be weakening so that Chancellor (Angela) Merkel will find it even more difficult than today to persuade the German public to accept any additional European responsibilities," said Soros.

Story continues below…

"That is what creates a three months' window."

AFP/The Local/bk

The Local (news@thelocal.de)

Your comments about this article

11:58 June 4, 2012 by smart2012
Just to clarify, Soros said that Merkel will have to change strategy and follow her partner's proposals if Euro wants to survive
12:35 June 4, 2012 by pepsionice
Considering the behavior of Soros over the past four decades in currency manipulation....I'd kinda laugh over any advice that he was handing out. His problem now....with the Yen, the Euro, and the Dollar under fire.....there's not a lot of safe places for him to do hedge bets on failures. Course, maybe he's got billions in Nigerian money secretly hid away....awaiting the Euro failure.
12:42 June 4, 2012 by freechoice
Let's go back to DM!
13:54 June 4, 2012 by Leo Strauss
How about a gold-backed DM!? Silver?

It has been suggested by some most unscrupulous sophists that most of our German gold (66%) is not in Germany, and that which is not in Germany may no longer be gold. Thus, our fate is inextricably linked with that of our fiat currency.

But I have said too much already...

I, for one, am certain that the bankers, currency speculators and Eurocrats will act in accordance with the Good (or, at least, that is what I say).
17:58 June 4, 2012 by IchBinKönig

'maybe he's got billions in Nigerian money secretly hid away....awaiting the Euro failure. '

more likely he's got billions in EU debt secretly hid away... awaiting the Euro Bonds. His bet wasn't as good as he had hoped, so he is trying to turn the tide in his bets favor.
20:08 June 4, 2012 by fload46d
Comment removed by The Local for breach of our terms.
03:50 June 5, 2012 by hanskarl
My vote is with IchBinKönig.

Soros sounds like a Greek name to me. Perhaps he should take all of his money and pour it into Greece. Then, when he is bankrupt and a pauper and no one is interested in his narcissistic self we won't have to put up with him anymore.
13:28 June 5, 2012 by Leo Strauss

He is of Hungarian descent.
19:05 June 5, 2012 by Sastry.M
Soros' advice may not sound sonorous to most Europeans emaciated with economic crises.
15:08 June 6, 2012 by Craptastic
Hanskarl, are you having nationalistic tendency problems today?
17:41 June 6, 2012 by raandy
The EU has vast differences like trading imbalances, competitiveness ,defective banking and balance of payment deficits. What works for one Nation does little for another.

Austerity,without growth is not going to work,in this regard I would agree with Soros.

Germany being the biggest player in the zone has the greatest influence on how to deal with the problem. I doubt at this point there is a real solution with out a complete overhaul of the EU banking system. So far all that has been accomplished is sliding the problem down the road until we run into it again.
17:52 June 6, 2012 by Leo Strauss
Mr Soros said in another article this week that Europe was in danger of becoming a German-dominated continent.

Does that mean he will be doing what he did during the last Reich?

The man has no soul.
00:21 June 7, 2012 by lozzshakes
With all the trouble with their own economy why do the americans think they still know what is best for world economies and stupidly tell other countries what they need to do. Have they not worked out they are not all that and no one is interested what they think. Britain is just as bad with a failing economy but thinks it has the right to dictate to germany how to save the eurozone.
01:51 June 7, 2012 by raandy
Soros was born in Hungry. Budapest ,born into a Jewish family.
06:58 June 7, 2012 by KerryMann
I'm a U. S. citizen and come from German immigrants 1600's and would love to return to Germany because I cannot stand the arrogance and stupidity of Americans who think they are better and know more than other people in the rest of the world. I hate it over here because most Americans don't have a clue as to what is going on in the rest of the world and how our policies meddle in other countries affairs. Please someone help me to get out of America so I can come back to where my ancestors came from and who really have some real culture. Our government is so corrupt over here that only 40% of people vote anymore because they only get two stupid corrupt parties Democrats and Republicans who are the same. Now we have to put up with the "Tea Party" that has completely shuts down Congress and nothing in government is getting done. There is going to be a serious crash at the end of the year in the U.S. when the tax cuts from Bush end, the deficit reduction has to happen because no agreement and the debt ceiling has to be raised in Congress. Please will someone please invite me to stay in Germany for a while. They can come live at my townhouse outside of San Francisco for a while so I can leave this insane place! kerrypw@gmail.com
14:49 June 7, 2012 by Leo Strauss

I feel for you KM, and yes, you do need to get out of there ASAP. Perhaps a move to Germany is like jumping from the frying pan and into the fire? Think a few years ahead. You are a teacher and still physically fit? Maybe South America as an ESL teacher? Or come to Germany and find a teaching position. It is still possible, but for how long?
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