Eurozone debt crisis: why next three months are crucial
Baku, June 7 (AZERTAC). Many people wonder how much longer the Eurozone can survive as it struggles to deal with its plaguing debt crisis.
Well, billionaire investor George Soros has the answer.
On Saturday, in a thorough and enlightening speech made at the Festival of Economics in Trento, Italy, Soros gave the region a deadline for resolving its debt debacle.
"In my judgment the authorities have a three months` window during which they could still correct their mistakes and reverse the current trends," said Soros. "By the authorities I mean mainly the German government and the Bundesbank because in a crisis the creditors are in the driver`s seat and nothing can be done without German support."
Soros said that if Germany hasn`t supported a more sufficient Eurozone bailout by the fall, it could be too late.
"By that time the German economy will also be weakening so that Chancellor [Angela] Merkel will find it even more difficult than today to persuade the German public to accept any additional European responsibilities. That is what creates a three-month window," said Soros.
Soros also outlined his economic policies, which are based on the fundamental idea that markets are imperfect and that bubbles frequently arise due to ignorance and the fallibility of the market`s participants.
He then went on to explain how the Eurozone debt crisis fits into these theories and how "there is a bubble involved, after all, but it is not a financial but a political one."
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