Soros: Europe enters a period of stagnation
Legendary investor George Soros said in an interview with Bloobmerg TV that European economy faces 25 years of Japanese-style stagnation unless politicians pursue further integration of the currency area and change policies that have discouraged banks from lending.
While the immediate financial crisis is over, it still faces a political crisis that has divided the region between creditor and debtor nations, Mr Soros said. 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” Mr Soros says. “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.”