George Soros, the man behind the famous
Quantum Fund, had made an announcement during the Festival of
Economics in Trento, Italy that Europe has only three months left to
save the Euro from falling in the edge. As we all know that Euro's
value had been declining for a long time now. There had been several
theories of the decline but it seems overspending was one of the main
reason. The European debt crisis seems to be amplified by the
overspending of European governments especially after the 2008
financial crisis.
The famous investor-billionaire thinks
that the EU summit, which is planned out for the end of June, would
be only limited to temporary measures. According to him, in order to
save Euro, it is necessary to create bank deposit insurance to stop
mass deposit outflow from the banks, which can be observed with
peripheral countries of the EU. Besides, it is necessary to provide
European banks with direct financing from ESM, which would start
working in the middle of summer 2012. Soros emphasized that all these
measures should be combined with the implementation of all-European
control and regulation instrument.
“It is necessary to ease the
financial burden for the countries with the biggest debts. It can be
reached in different ways, however, they all demanded active German
Federal Bank and FRG participation. Nothing can be reached without
German support,” he then mentioned that, “The euro's chance of
survival is very high as its crash will have negative effects not
only on peripheral countries but also on Germany,”.
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