The Future of Europe: An Interview With George Soros

[Turk.]

By Gregor Peter Schmitz April 24, 2014

Supporters of the Russian annexation of Crimea at a rally in Red Square, Moscow, March 18, 2014

Gregor Peter Schmitz: The conflict in Crimea and Ukraine has changed the shape of European and world politics, and we will come to it. But let us first talk about a subject on which you?ve taken a critical position over the years: the crisis of the European Union: With regard to the euro, isn?t the worst over?

George Soros: If you mean that the euro is here to stay, you are right. That was confirmed by the German elections, where the subject was hardly discussed, and by the coalition negotiations, where it was relegated to Subcommittee 2A. Chancellor Angela Merkel is satisfied with the way she handled the crisis and so is the German public. They reelected her with an increased majority. She has always done the absolute minimum necessary to preserve the euro. This has earned her the allegiance of both the pro-Europeans and those who count on her to protect German national interests. That is no mean feat.

So the euro is here to stay, and the arrangements that evolved in response to the crisis have become established as the new order governing the eurozone. This confirms my worst fears. It?s the nightmare I?ve been talking about. I?m hopeful that the Russian invasion of Crimea may serve as a wake-up call. Germany is the only country in a position to change the prevailing order. No debtor country can challenge it; any that might try would be immediately punished by the financial markets and the European authorities.

Schmitz: If you said that to Germans, they would say: Well, we have already evolved a lot. We are more generous now and have modified our policy of austerity.


Soros: I acknowledge that Germany has stopped pushing the debtor countries underwater. They are getting a little bit of oxygen now and are beginning to breathe. Some, particularly Italy, are still declining, but at a greatly diminished pace. This has given a lift to the financial markets because the economies are hitting bottom and that almost automatically brings about a rebound.

But the prospect of a long period of stagnation has not been removed. It?s generally agreed that the eurozone is threatened by deflation but opposition from the German Constitutional Court and its own legal departments will prevent the European Central Bank (ECB) from successfully overcoming the deflationary pressures the way other central banks, notably the Federal Reserve, have done.

The prospect of stagnation has set in motion a negative political dynamic. Anybody who finds the prevailing arrangements intolerable is pushed into an anti-European posture. This leads me to expect the process of disintegration to gather momentum. During the acute phase of the euro crisis we had one financial crisis after another. Now there should be a series of political rather than financial crises, although the latter cannot be excluded.
Full Interview

[+hedleigh Subscriber²]

Interesting read, thanks for posting. Tis an interesting time in current world politics.

[DocM]

Soros isn't one to talk given his history of undermining sevetal nations currencies for his own profit. Insider trading convictions in France, undermining the Bank of England and fostering political unrest so he can buy currencies low and profit on the rebound. Nice guy :whistle: