Renowned financier and billionaire George Soros has warned that the survival of the European Union is threatened by the coronavirus if the EU fails to issue “consoles” (consolidated fixed-rate securities) to help its weak members like Italy.”If the EU is not able to consider this now, it may not be able to overcome the challenges it is currently facing,” Soros said in response to reporters’ questions via email, Reuters reported, quoted by BNR.
“This is not a theoretical possibility, this could be a tragic reality,” he added.
According to Soros, the damage from the coronavirus to the European economy will last longer than many believe.
George Soros also said the EU would have to maintain its “AAA” credit rating in order to issue such joint debt – and should therefore have the power to raise taxes to cover the cost of these bonds. In this regard, he suggested that the EU would simply propose tax increases instead of imposing them itself.
“There is a solution. The taxes themselves should only be authorized, they should not be applied,” said Soros, who gained immense popularity after betting against the British pound in 1992, just before Britain left the then European Monetary Mechanism, winning of this operation over $ 1 billion.
He then used his Quantum investment fund to bet short positions against the pound (to sell £ 10 billion), estimating that the British pound was overvalued against the German mark, forcing then-British Prime Minister John Major to withdraw the pound from the European Exchange Rate Mechanism. (ERM).
Asked about Brexit, George Soros said he was particularly worried about Italy. “What would be left of Europe without Italy?” He asked rhetorically.
“The easing of state aid rules, which is in Germany’s favor, was particularly unfair to Italy, which was already the sick person in Europe and was subsequently hardest hit by Covid-19,” the prominent financier said.