Ireland got ‘raw deal’ on debt – Soros

George Soros, the global investment guru has claimed that Ireland got a “raw deal” over its debt and demands by Ireland for debt relief would be met but only at a minimum.

Speaking in Davos, Switzerland at the World Economic Forum, Mr. Soros said that “euro is here to stay” but warned against complacency because fundamental problems have not been fixed.

He also said 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.The policy of cutbacks for indebted countries advocated by Germany and Chancellor Angela Merkel “is just simply counterproductive” and “is pushing the entire euro zone into recession” claims Mr. Soros.

He also said Germany had agreed to do the minimum to stop the euro zone from breaking up with Merkel going along with plans by the European Central Bank to offer to buy bonds issued by indebted countries if they agree to reduce deficits.

Soros said a slumping economy would worsen the political tensions between countries and that the creditor-debtor divide risked breaking up the European Union itself over the long-term. “So the financial solution is politically unacceptable, in fact in the long run intolerable,” he stated.

Soros made a fortune running investment funds and founded a global network of foundations that support democracy and open societies.

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