Billionaire financier and philanthropist George Soros said he wants Germany to abandon its demand for austerity from struggling euro-area member countries or withdraw from the euro, the Financial Times reported, citing an interview.
Soros emphasized he doesn’t want Germany to leave the euro and instead called on the country to abandon its deflationary stance. “Politically, it would be a terrible blow,” if Germany were to leave, he said, according to the FT.
Demanding more stringent austerity conditions from such countries as Spain and Italy “is a step towards making a two- tier Europe permanent,” the FT cited Soros as saying.
Soros urged the creation of a European Fiscal Authority that would take on the solvency risk of all government bonds bought by the European Central Bank, assume the operation of the euro-region rescue funds and set up a debt-reduction fund that would acquire all euro-area government debt higher than 60 percent of the countries’ GDP, the FT said.
Soros has been proposing the institution of such an EFA for some time.
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