Soros predicted the euro’s collapse, if the European leaders are not agree this week

Disagreements among the European leaders contain a serious risk, since it remains less and less time for the Europe to demonstrate investors’ willingness to do whatever is necessary for the euro’s salvation.

The famous American investor George Soros urged Europe to create a special fund for Italy and Spain bonds’ purchase, noting that the inability of European leaders to take the decisive measures during a meeting which will take place this week, may cause the collapse of the European currency.

The creation of such a fund and purchase of Italian and Spanish bonds at its own expense shall be connected to both countries’ realization of budget economy realistic programs, said Soros in an interview with Bloomberg.

Financing of such a fund could be implemented due to the placement of European treasury bills under the cover of all members of the euro-zone, which will allow the Securities have a very low profitability, he said.

The crisis overcoming plan in the euro-zone was directed by Soros to the European leaders.

France and Italy urge Germany to take the decisive measures in order to end the debt crisis in the euro-zone, which provoked the growth of ten-year Spanish securities profitability to a level above 7% last week, which, according to many experts, is unacceptable.

The next meeting of the European leaders will be held in Brussels on June 28, however their views on a number issues are still diverge.

Such a situation, according to Soros, carries a serious risk, since it remains less and less time for the Europe to demonstrate investors’ willingness to do whatever is necessary for the euro’s salvation.  

‘We see the differences in financial issues – said Soros. – If they are not solved in the next three days, I am afraid that the summit will be a failure. Such a result can become a fatal.’

The German Chancellor Angela Merkel believes that the release of single bonds of euro-zone is premature, noting that this step cannot be accepted without the full budgetary alliance achieve in the region. Germany also requires that Greece and other countries in the region carried out the claimed reduce costs’ programs to get the promised assistance to them.

Merkel’s approach deepens the European crisis, since the countries are in needed of growth, rather than budgetary economy, in order to pay debts, said Soros.

ZN.UA