Articles & Essays
Europe’s future is not up to the Bundesbank
Far from abating, the euro crisis has recently taken a turn for the worse. The European Central Bank relieved an incipient credit crunch through its longer-term refinancing operations. The resulting rally in financial markets hid an underlying deterioration; but that is unlikely to last much
Interview with George Soros: Angela Merkel is Leading Europe in the Wrong Direction
SPIEGEL: German Chancellor Angela Merkel is praised globally as "Mrs. Europe" and popular at home - partly thanks to her strong refusal to pledge more German money to the Euro rescue effort. You, however, are highly critical of Merkel's leadership. Why?
SOROS: I admire Chancellor Merkel for her
How to Save the Euro
My new book, Financial Turmoil in Europe and the United States, tries to explain and, to the extent possible, predict the outcome of the euro crisis. It follows the same pattern as my other books: it contains an updated version of my conceptual approach and the application of that approach to a
Only way to stop the run on eurozone debt
The current turmoil in the eurozone bonds markets shows striking parallels to the situation in autumn 2008. Then, bank depositors had lost confidence in the stability of the institutions holding their assets, and the threat of a bank-run could only be avoided by comprehensive government guarantees
My seven point plan to save the eurozone
1) Member states of the eurozone agree on the need for a new treaty creating a common treasury in due course. They appeal to European Central Bank to co-operate with the European financial stability facility in dealing with the financial crisis in the interim - the ECB to provide liquidity; the EFSF to accept the solvency risks.
A routemap through the eurozone minefield
A group of almost 100 prominent Europeans delivered an open letter to the leaders of all 17 eurozone countries on Wednesday. The letter said, in so many words, what the leaders of Europe now appear to have understood: they cannot go on “kicking the can down the road”. The road has been blocked by
How to stop a second Great Depression
Financial markets are driving the world towards another Great Depression with incalculable political consequences. The authorities, particularly in Europe, have lost control of the situation. They need to regain control and they need to do so now.
Three bold steps are needed. First, the
Does the Euro Have a Future?
The euro crisis is a direct consequence of the crash of 2008. When Lehman Brothers failed, the entire financial system started to collapse and had to be put on artificial life support. This took the form of substituting the sovereign credit of governments for the bank and other credit that had
Three steps to resolving the eurozone crisis
A comprehensive solution to the euro crisis must have three major components: reform and recapitalisation of the banking system; a eurobond regime; and an exit mechanism.
First, the banking system. The European Union’s Maastricht treaty was designed to deal only with imbalances in the public
Germany must defend the euro
Financial markets abhor uncertainty; that is why they are now in crisis mode. The governments of the eurozone have taken some significant steps in the right direction to resolve the euro crisis but, obviously, they did not go far enough to reassure the markets.
At their meeting on July 21, the
