Soros predicts weaker nations will leave euro
Monday 27 June 2011
George Soros, the man who made more than $1bn by betting against sterling on Black Wednesday in 1992, predicted yesterday that weaker nations would have to leave the euro.
Mr Soros said it was "probably inevitable" that highly indebted economies would be given a way to quit the single currency.
"We are on the verge of an economic collapse which starts, let's say, in Greece but it could easily spread," the 80-year-old investor said. "The financial system remains extremely vulnerable."
European leaders are trying to avoid Greece defaulting on its debt – which could have a knock-on effect for Portugal, Ireland and Spain and threaten the euro's existence. Fears pushed the euro to a record low against the Swiss franc last week.
Mr Soros said the euro was at the centre of Europe's crisis. "It's a kind of crisis that is really developing. It's foreseen. Most people realise it," he told a panel discussion on risks to liberal democracy in Europe, reported by Bloomberg.
"It's still developing. The authorities are actually engaged in buying time and yet time is working against them."
Mr Soros achieved fame and lasting influence in September 1992 when he bet that sterling would not remain in the European Exchange Rate Mechanism at its agreed level.
On Black Wednesday the Conservative government was forced to pull sterling out of the ERM, which was the precursor to the euro, at a cost to the country of £3.4bn.
Wellcome Image Awards: The most striking images from the world of science, including breast cancer cells under chemical attack and a photographer’s own kidney stone
Missing Malaysia Airlines plane: 'All passengers' under investigation, police say
Bob Crow death: 'Admired by his members, feared by employers' - Tributes pour in for RMT union leader and 'working class hero' Bob Crow
Oscar Pistorius murder trial: Athlete repeatedly sick as court hears 'graphic details' of Reeva Steenkamp's post-mortem
How climate change helped Genghis Khan: Scientists believe a sudden period of warmer weather allowed the Mongols to invade with such success
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Poor 'live like animals' says Boris's privately educated sister after going on 'poverty safari'
Exclusive: Impact of immigrants on British workers ‘negligible’
Vince Cable: Teachers 'know absolutely nothing' about the world of work
Ukraine crisis: Russia pledges to 'retaliate against sanctions' as Ukrainian president says Crimea vote will not be recognised
The quiet diplomat: Catherine Ashton - recognised and admired in all the world’s troubled countries, yet ridiculed at home
- 1 Pakistan vs Paul Smith: Sandal-wearers bemused by famed British designer's attempts to sell traditional Peshawari chappal-style shoes for the distinctly untraditional sum of £300
- 2 Family forced to flee home after discovering 'terrifying' nest of spiders in bananas
- 3 Grace Dent: Who cares if she spells it Barraco Barner? Gemma Worrall is more employable than some bookish arts graduate
- 4 Russell Crowe's Noah banned in three Arab countries before worldwide premiere
- 5 Bob Crow death: 'Admired by his members, feared by employers' - Tributes pour in for RMT union leader and 'working class hero' Bob Crow
iJobs Money & Business
£1000 per month: Inspiring Interns: The company works with Tier 1 FTSE 100 Ban...
£35000 - £60000 per annum + Bonus + Benefits: Pro-Recruitment Group: You must ...
£60000 - £80000 per annum + BONUS + BENEFITS: Harrington Starr: A top, City ba...
VOLUNTARY ONLY - EXPENSES REIMBURSED : Reach Volunteering: Fantastic opportuni...