Star investor George Soros is worried and is now predicting the next big financial crisis. The current situation in Italy, a possible “Italexit” and EU punitive tariffs are causing concern for investors.
For Soros, there are many unresolved issues, a sharp rise in the dollar and capital flight from emerging markets, just a few reasons for a financial crisis. He warned the European Union in his speech on Tuesday of the imminent threat. According to him, the EU is already in an “existential crisis”.
Why the EU is in crisis?
The seemingly harmonious coexistence of the European Union seems to tip over. Many moved away from the actual founding goals of the Union. Some member states are nervous and even rejected an ever closer union. Young people are worried about the future, are worried about secure jobs and see the EU as the reason for this. Add to this a destructive US foreign policy, as well as social crises in Italy, Spain and Greece. But also the flickering crisis has contributed to the fact that the European economy is now facing collapse. According to George Soros , everything went wrong in the last few years, which could have gone wrong.
Although parts of the world have also recovered – the USA, Central Europe, Southeast Asia, China and India are booming – the negative influences seem to have gained the upper hand according to his assessment. The current debate over the dissolution of the Iran deal and tensions between the US and the European Union would have a negative impact on the European economy alongside all the other events. Nevertheless, Soros has hope and appeals with proposals to the European Union.
That demands Soros
To avert the financial crisis, Soros calls for a fundamental renewal of the European Union. In his opinion, a “multi-lane Europe” could solve some problems. Soros calls for more choice for member countries and seeks radical reform here. He sees the lifting of the compulsion for member states to join the euro as an important step.
In addition, Soros called for a Marshall Plan for Africa worth € 30 billion a year – an EU-funded measure to counter the refugee crisis.
The euro brings with it many unresolved problems for Soros and should not negatively impact – or even destroy – the European Union. The star investor emphasized the importance of transforming the European Union. The time has come for the European Union to transform itself into an association that is also inviting to countries such as Great Britain, according to Soros.
George Soros, however, remains confident and encourages society to actively participate. Whether the European Union will finally regain its momentum and a financial crisis can really be averted remains to be seen.