YEREVAN, March 13. /ARKA/. Billionaire investor George Soros said Europe faces 25 years of Japanese-style stagnation unless politicians pursue further integration of the currency bloc and change policies that have discouraged banks from lending.
While the immediate financial crisis that has plagued Europe since 2010 “is over,” it still faces a political crisis that has divided the region between creditor and debtor nations, Soros, 83, said in a Bloomberg Television interview in London today. At the same time, banks have been encouraged to pass stress tests, rather than boost the economy by providing capital to businesses, he said.
Europe “may not survive 25 years of stagnation,” Soros said in the interview with Francine Lacqua. “You have to go further with the integration. You have to solve the banking problem, because Europe is lagging behind the rest of the world in sorting out its banks.”
Soros also said Ukraine should serve as a “wake-up call” for Europe, because the political turmoil the country now faces stems in part from the same problems that triggered the region’s financial crisis.
The European Union required “too much” of Ukraine and offered “too little” as the country attempted to join the political bloc, he said. That enabled Russian President Vladimir Putin to fill the void and gain power in Ukraine, he said. –0--