Photo: George Soros via YouTube
Billionaire investor George Soros is speaking at the World Economic Forum in Davos, Switzerland.Soros gave a particularly pessimistic speech on the euro crisis last June, only a month before ECB President Mario Draghi stepped up and reassured markets that the ECB would “do whatever it takes to save the euro.”
Today, Soros told the audience that “the euro is now here to stay,” according to Bloomberg.
Soros said the immediate crisis is over but that there is no time for complacency, and that austerity is not what Europe needs right now.
Furthermore, Soros reiterated that the causes of the euro crisis still haven’t been solved and that the next year or two will be “very tense,” as Germany will always take the minimum amount of action required to save the euro.
RTE News editor Tony Connelly provided some more colour via Twitter:
Soros: a turbulent time ahead for 2013, first in exchange rates, then interest rates, then in political decisions #davos
— Tony Connelly (@tconnellyRTE) January 24, 2013
Soros’ comments reflect those of other analysts and spectators who believe that very little will be accomplished on the euro crisis front until after Germany holds national elections in September.
And as far as markets are concerned, Soros said the euro is likely to keep going up from here.