According to Mr. Soros, the euro was an incomplete currency from the start as the EU’s 1992 Maastricht Treaty, which led to the creation of the euro currency, established a monetary union without a political union.
In a speech for delivery at Berlin’s Humboldt University, Soros said “the euro is a patently flawed construct.” The legendary investor who raked in $1 billion in 1992 by betting against the British pound also criticized Germany’s budget savings policy and its attitude toward the EU.
Reuters: “By insisting on pro-cyclical policies, Germany is endangering the European Union. I realize that this is a grave accusation but I am afraid it is justified,” he said.
“By cutting its budget deficit and resisting a rise in wages to compensate for the decline in the purchasing power of the euro, Germany is actually making it more difficult for the other countries to regain competitiveness,” he added.
Soros called for Europe to grow its way out of trouble and to then revise and strengthen the structure of the euro. He emphasized however, that “This cannot be done without German leadership.”