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.