George Soros: Greek Economy will Never Recover within Eurozone



Redesigning the International Monetary System: A Davos Debate: George Soros“Greece will never recover as long as it is a member of the Eurozone,” said well-known investor George Soros, adding that the country will never be able to repay its debt under current conditions.

In an interview with Wirtschaftswoche magazine, the investor criticized the austerity policies imposed on Greece by Germany. However, he said, it is the only country that can keep the European Union together and praised the role of German Chancellor Angela Merkel in the refugee crisis.

“When the Greek crisis broke out for good in 2009, the EU, under the leadership of Germany, gave a helping hand, but Greece had to pay a high price,” said Soros.

“The country was asked to pay excessively high interest rates making it impossible to serve the Greek debt. Unfortunately, the Germans repeated the mistake during the last negotiations. Again, they imposed conditions that brought [Greece] closer to bankruptcy. Greece will never be able to repay its debt,” he added.

Asked if Greece is a good place for private investment, Soros said categorical: “Not as long as Greece is a member of the Eurozone. With the euro, the country will never be able to recover, because the exchange rate is too high and the country is not competitive.”

Soros sees similarities between Ukraine and Greece: “The Ukrainian people have made a great effort over the last two years. But Europeans give Kiev very little money, making the same mistake as in the case of Greece. The “old” Ukraine looked like the “old” Greece. Oligarchs had split the country between them and civil servants sought to become rich. But people in the “new” Ukraine are seeking radical reforms and they need Europe’s help.”