Soros: euro crisis might wreck EU
The euro fell sharply on the foreign exchanges today after the legendary speculator George Soros said that growing economic and political tensions could destroy the European Union.
A hard-hitting attack by the billionaire financier on the ineptitude of European policymakers was backed by warnings from other economists on the first day of the World Economic Forum in Davos about the fragility of the single currency.
"Unfortunately, the European authorities had little understanding of how financial markets really work, and did everything wrong." Greece, Soros added, was on the edge of a default that could push it out of the euro. "The odds are in that direction." Following his remarks, the euro lost a cent against the dollar, falling below $1.30.
Nouriel Roubini, one of the few economists to predict the global financial crisis, said: "The policy response is making the recession worse. What Europe needs is less austerity and more growth."
http://www.guardian.co.uk/business/2012/jan/25/davos-soros-roubini-warnings-eurozone