US, WASHINGTON (ORDO NEWS) — George Soros, the billionaire financier, warned that the coronavirus pandemic in the world threatens the existence of the European Union if its member countries can not issue perpetual bonds to help the region’s weak economies, reports Reuters.
According to Soros, if the EU cannot do this, it may not be able to cope with the current problems.
“This is not a theoretical possibility, it can become a tragic reality,” he said.
Soros said that the EU will have to maintain its AAA credit rating in order to issue such debt obligations; accordingly, the EU needs the authority to raise taxes to cover the cost of bonds.
Soros also suggested that EU authorities could simply sanction taxes, rather than introduce them.
Raising the topic of Brexit, Soros remembered Italy, saying that he was especially concerned about the situation of this country.
“The weakening of government aid rules that favor Germany was especially unfair to Italy, which was already a sore spot in Europe, and then suffered the most from the coronavirus,” Soros said.
In 1992, Soros made a bet against the British pound against the German mark, which forced the then British Prime Minister John Major to withdraw the pound from the European Exchange Rate Mechanism (ERM).
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