Berlin - George Soros, former U.S. speculators who are now 'switched' to be a millionaire philanthropist assess Greece and Portugal should withdraw from the EU and the euro zone because of their large debts.
"One has been so wrong in handling the problem of Greece, and the best way forward at this time may come out with out regularly, with Greece leaving both the EU and the euro common currency," Soros said in an interview published in the German Spiegel magazine as reported by AFP, Monday (8/15/2011).
He suggested the same thing for Portugal to 'pull' of Europe and the euro. "The EU and the euro will survive," he added.
Countries that are wrapped debt, Greece and Portugal are struggling to implement the reform program by Europe and the International Monetary Fund, with spending cuts and raise taxes in exchange for financial aid.
Both Greece and Portugal, along with Ireland, has been awarded billions of dollars of bailouts by the EU-IMF rescue loans to prevent them from defaulting on their huge debts. Debt problems of these countries has led to global financial markets continue to experience disruptions in recent months.
Further, Soros also suggested it was time for eurozone members to accept the introduction of Eurobonds.
"Whether you like it or not, the euro there and for it to function properly, the countries sharing the currency should be able to refinance most of their debts under the same conditions," he said.
Previous German government opposed the introduction of the bonds, but Soros suggested Germany, as the strongest partner of the European financial, should be responsible for defining the rules to be introduced.
Soros, who has earned more than $ 1 billion by betting against the British pound in 1992, admitted intending to play against the European currency markets.
"I would not bet against the euro. Because China has a huge interest in alternative currencies other than dollars and will do everything possible to help Europe save him," he said.
source: http://finance.detik.com
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