Soros: Europe's 'Plan A' Stinks
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Hedge fund-titan George Soros said Europe needs a 'plan B' moving forward, not individual solutions from individual nations.
Following the recent Greece crisis, Soros pointed out there was no provision in the original scripting for euro formation should a country exit the group, a story looking more and more inevitable as events unfold.
A collapse of Greece could soon spread to other European countries.
On Sunday, at an Austrian newspaper Der Standard conference, Soros said euro nations are sticking to a Plan A, whereby a solution is being sought on a national level. But a Plan B must be developed.
Soros's Plan B has an increased European budget, a European banking system not guaranteed by individual nations, and the need for the European Financial Stability Facility to be three times as large -- and funded by European taxes.
This "United States of Europe" idea wouldn't get very far in the current environment, he said. While there is a central European bank, no central treasury or common fiscal policy is in place.
Following the recent Greece crisis, Soros pointed out there was no provision in the original scripting for euro formation should a country exit the group, a story looking more and more inevitable as events unfold.
A collapse of Greece could soon spread to other European countries.
On Sunday, at an Austrian newspaper Der Standard conference, Soros said euro nations are sticking to a Plan A, whereby a solution is being sought on a national level. But a Plan B must be developed.
Soros's Plan B has an increased European budget, a European banking system not guaranteed by individual nations, and the need for the European Financial Stability Facility to be three times as large -- and funded by European taxes.
This "United States of Europe" idea wouldn't get very far in the current environment, he said. While there is a central European bank, no central treasury or common fiscal policy is in place.
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