Soros: Euro "here to stay," denounces austerity

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Associated Press

Posted on January 24, 2013 at 7:04 PM

FRANKFURT, Germany (AP) — Investor and philanthropist George Soros says the "euro is here to stay" but warns that complacency about the future of the 17-country currency is misplaced because its fundamental problems have not been fixed.

Soros said Thursday that while the European Central Bank has managed to halt market turmoil that threatened to break up the euro, its fundamental imbalances "have been papered over."

He says the currency's government debt crisis has split it into creditor countries such as Germany and debtors such as Greece, with the creditors in charge and demanding what Soros calls misguided austerity — cutbacks in spending to reduce deficits.

He says the policy of cutbacks for indebted countries advocated by Germany and Chancellor Angela Merkel "is just simply counterproductive" and "is pushing the entire eurozone into recession."

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