Billionaire investor George Soros said Europe’s fiscal compact to promote budgetary discipline can’t work in its current format, while the euro is “broken and needs to be fixed.”
“The fiscal compact is going to push Europe into a deflationary debt trap with potentially catastrophic consequences,” Soros said today at a book party in Berlin. “This can be prevented if only it’s recognized there’s fundamentally something wrong with the rules of the euro.”
Soros is best known for making $1 billion in 1992 betting the U.K. would be forced to devalue the pound. Soros Fund Management LLC decided in July to return outside capital and focus on running assets for Soros and his family, who made up the bulk of its then $25.5 billion assets, to avoid having to register with the Securities and Exchange Commission by last month.
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