George Soros

During his presentation at the Economic festival in Trento, Italy on Sunday June 3, investor and billionaire George Soros said that Europe has three months left to save the euro.

«After the expiration of the three months’ window the markets will continue to demand more but the authorities will not be able to meet their demands», – MarketWatch cites his words.

The European Union (EU) summit in June is likely to conclude with the introduction of limited measures to save the euro – a solution that satisfies all sides. «That means the measures will again offer some temporary relief but the trends will continue», – the investor says.

According to his projections, the June 17 election in Greece will be carried out in fear of the country’s exit out of the EU and the political force that are ready to fulfill the creditors’ demands will win. Nevertheless, no matter what kind of government there may be in Greece – it will not be able to fulfill all the requirements and we will see the culmination of the crisis in this country in autumn.

Soros also believes that Germany’s economy will also weaken in autumn and it will be very hard for Chancellor Angela Merkel to convince Germans to take up additional obligations.

Soros believes that it is necessary to introduce bank deposit insurance in order to save the euro and prevent massive outflow of deposits from banks, which is currently noted in peripheral countries’ banks. He also proposed to allow banks to access direct financing from the European Stability Mechanism, which is due to begin its work in the middle of summer.

Despite the hardships, Soros believes that the united European currency has a future. «The likelihood is that the euro will survive because a breakup would be devastating not only for the periphery but also for Germany», – Soros says.

Ref: 102.109.109.1386