George Soros: German economic policy could destroy eurozone

24 June 2010

Billionaire financier George Soros has issued a strong warning about Germany's economic policy for the eurozone.

He said that instead of the budget cuts that are being proposed, chancellor Angela Merkel needs to bring in measures that will support growth.

Mr Soros said that Germany "could destroy the European project" by dragging neighbouring states into deflation.

"By insisting on pro-cyclical policies, Germany is endangering the European Union," he said.

"I realize that this is a grave accusation but I am afraid it is justified."

Mr Soros went on to describe the euro as a "patently flawed construct".

Germany is not the only country in Europe looking to make budget cuts in response to the sovereign debt crisis in the region.

Earlier this week, Claude Gueant, chief of staff to French president Nicolas Sarkozy, told the Financial Times that France is aiming to reduce its deficit to three per cent by 2013 – a goal which will require cuts of around €100 billion ($123 billion).

By Claire Archer

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