The controversial financial speculator George Soros believes that the existence of the common European currency and the unwillingness of Germany to guarantee the debts of the poorer European countries will eventually lead to the dissolution of the European Union.
George Soros, also known as “the man who broke the Bank of England”, has been promoting the idea of Eurobonds i.e. special debt instruments backed jointly by all members of the European Union. The money obtained from selling such bonds would be used to finance the deficits of countries like Greece, Portugal, Spain or Italy.
At the same time, the shared responsibility for paying the debts assumed through Eurobonds would mean that Germany would likely have to pay for the financing of the weaker European countries, implicitly transferring money from the German taxpayers to the welfare recipients from France, Italy and other countries with oversized welfare systems. George Soros argues that it is both a moral obligation of Germany and the soundest solution for the European crisis. The German economists who oppose the issuance of such bonds believe that “debt mutualization” would be detrimental for the fiscal discipline of the European countries and would benefit the countries that have unsustainable deficits at the expense of the more disciplined countries like Germany. >> Read More