Tags: euro | Soros | Germany | Merkel

Schaeuble Says Soros Doesn't Grasp Euro and Is Wrong on Remedies

Thursday, 27 Mar 2014 07:34 AM

Billionaire investor George Soros “hasn’t understood” the euro and has underestimated the currency bloc’s recovery from its four-year debt crisis, German Finance Minister Wolfgang Schaeuble said.

Stabilizing the 18-member euro area has gone better than “most so-called experts” predicted, Schaeuble said in an interview with the Handelsblatt newspaper. He singled out Soros, who has pilloried German-led austerity measures and has criticized the euro area’s construction.

“He still says the same thing, but he’s still wrong,” said Schaeuble, whose comments were confirmed by the Finance Ministry. “As with so many outside of Europe, he hasn’t understood the currency union: we have a joint monetary policy, but no joint finance and economic policy.”

Schaeuble has championed the austerity-first policies of Chancellor Angela Merkel’s government, insisting that pooling the debt of euro members would undercut the incentive for economic overhauls, including budget cuts. Soros has said spending cuts have been counterproductive and produced a two-tiered Europe of debtor and creditor nations.

In a March 12 interview with Bloomberg Television, Soros said that even though the acute phase of the debt crisis is over, Europe faces a quarter-century of Japanese-style stagnation unless it pursues further integration.

“The policy that Germany in particular is imposing on Europe is counterproductive and is making the condition of the debtor countries worse and worse,” Soros said in the interview with Francine Lacqua. Germany is “forging ahead” with its export might, while Italy and Spain are falling behind, he said.

Schaeuble and Merkel say Germany’s export strength was spurred by the country’s labor-market reforms, which the rest of Europe should mimic.

“We mustn’t pool liabilities as long as there’s no joint finance and economic policy,” Schaeuble told Handelsblatt. “Otherwise nobody will make uncomfortable decisions anymore.”

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Billionaire investor George Soros "hasn't understood" the euro and has underestimated the currency bloc's recovery from its four-year debt crisis, German Finance Minister Wolfgang Schaeuble said.
euro,Soros,Germany,Merkel
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2014-34-27
Thursday, 27 Mar 2014 07:34 AM
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