Loading...
See More

Merkel 'taking Europe in wrong direction'

Feb 12 2012 14:54 AFP

Related Articles

Merkel vows faster eurozone reform

Merkel, Sarkozy demand tough new EU pact

Merkel under fire over eurobond stance

Merkel fights to save euro

Merkel, Sarkozy seek eurozone jobs, growth

Merkel: Finance cleanup will take a decade

 

Berlin - American billionaire George Soros slammed German Chancellor Angela Merkel in an interview published on Sunday, warning that her policies could lead to a repeat of the Great Depression.

"I admire Chancellor Merkel for her leadership. But unfortunately she is taking Europe in the wrong direction," the financier and philanthropist told the weekly Der Spiegel.

Soros warned against addressing the crisis with spending cuts, urging the injection of funds instead.

"Otherwise we will repeat the mistakes that plunged America into the Great Depression in 1929. That's what Angela Merkel doesn't understand," he said.

US President Franklin Roosevelt addressed the crisis in 1933 with his New Deal, inspired by British economist John Keynes, which combined a reform of the banking system with major infrastructure projects.

Soros also told Der Spiegel, in remarks published in German on the magazine's website, that he thought Europe could handle the crisis without the help of the International Monetary Fund.

He said it was a mistake to offer a bailout to Greece tied to high interest rates. "That's why the country can't be saved today, and the same thing will happen to Italy if we put this country in the straitjacket of paying harsh interest rates," Soros said.

A Greek default would cause an escalation of the crisis and could lead to a run on Italian and Spanish banks, and "Europe would explode", he said.

NEXT ON FIN24X

 

Lastest Articles

Here is how to check your credit score and manage it Read More...
Top tips to save money over the festive period Read More...
These are the top 5 most fuel efficient cars in SA Read More...
What to consider when switching medical aid schemes Read More...
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
3 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...