Buffett Says Euro Destined for Failure Without Rule Changes
Billionaire Warren Buffett said the euro is destined for failure and must be reworked if the 17 countries that share the currency are to keep their monetary union.
“The system that they put in place had a fundamental fatal flaw,” Buffett said today on Bloomberg Television’s “In the Loop With Betty Liu” in an interview from the Allen & Co. media conference in Sun Valley, Idaho. “It can’t survive with the present rules. That’s what they’re learning. The question is, can 17 countries get together in a way to essentially re-do something.”
European leaders are deepening their ties in response to the sovereign debt crisis by collaborating on bailouts and insisting on budget-deficit curbs. The euro was started by 11 countries, led by Germany, in January 1999. Buffett said repairs to the system will be difficult considering the number of countries that must find agreement.
“It’s kind of hard to patch something with so many people consulting on the patch,” Buffett said.
To contact the reporter on this story: Andrew Frye in Rome at afrye@bloomberg.net.
To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net
Berkshire Hathaway Chairman Warren Buffett
David Paul Morris/Bloomberg
Warren Buffett, chairman of Berkshire Hathaway Inc.
Warren Buffett, chairman of Berkshire Hathaway Inc. Photographer: David Paul Morris/Bloomberg
July 13 (Bloomberg) -- Warren Buffett, the billionaire chairman of Berkshire Hathaway Inc., talks about JPMorgan Chase & Co.’s $4.4 billion trading loss at its chief investment office and the U.S. banking industry. Buffett also discusses his investment strategy and holdings, the U.S. economy and housing market, and the outlook for the euro. He speaks with Betty Liu at the the Allen & Co. media conference in Sun Valley, Idaho, on Bloomberg Television's "In the Loop." (Source: Bloomberg)
July 13 (Bloomberg) -- Betty Liu reports on her interview with Warren Buffett. She speaks on Bloomberg Television's "Market Makers." (Source: Bloomberg)
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