Europe’s prosperity and stability have played an important role in the economic growth of the United States, according to economic expert George Soros. Soros thinks Europe ranks right behind China when it comes to contributing to the America’s economic growth. But Soros told Bloomberg that the European Union is changing the way the world looks at Europe. The world will have to prepare for a less secure, less stable and less prosperous America thanks to the decisions or lack of decision making from the European Union.
The Soros interview was posted on New York Review of Books website. Americans had a chance to hear what Soros had to say about the euro, Greece, China, the Middle East and the European Union. Most of those thoughts were focused on the EU because Europe was the center of attention in the interview. But the world is still focused on China and what the next economic move might be in the red-capitalistic state.
Some economic experts say China’s attempt to rebuild the Silk Road and their massive internal infrastructure project will give China the impetus it needs to pull its economic transformation off, but Soros is not one of those experts. Soros believes China could play a role in the collapse of the European Union, but he still blames the EU’s leadership for the potential destruction of the Union.
Mr. Soros wasn’t short of reasons why the EU is in trouble. After all, the European Union has been in trouble for years. Members of the EU spend too much. Member countries have run up debts that have turned some members into financial watchdogs. Germany is one of those watchdogs since most of the money to keep the EU solvent comes from Germany. Soros thinks Angela Merkel could be the leader that keeps some semblance of solvency in the EU, but at this point, Merkel is busy protecting herself from the German nationalists.
There is no easy fix to the EU’s dilemma. Some members don’t believe it’s a dilemma. They call the EU a waste and are waiting for the right time to disconnect from it. That time could be this year, according to Soros. The Middle Eastern exodus has driven a wedge through Europe and Soros thinks that wedge is too strong to move. The rules that formed the European Union have been abandoned in order to protect individual borders. That is the one step in a series of debilitating steps that could result in the breakup of the EU.
Mr. Soros did say there is time to fix the EU, but the solution must come from inside the EU, and that doesn’t look probable at this point.