Billionaire investor George Soros called on Europe to start
a fund to buy Italian and Spanish bonds, warning that a failure by leaders
meeting this week to produce drastic measures could spell the demise of the
currency, Bloomberg reports.
Policy makers should create a European Fiscal Authority to
purchase sovereign debt in return for Italy and Spain implementing achievable
budget cuts, Soros said in an interview in London yesterday. Funding for the
purchases would come from the sale of European Treasuries, which would have low
yields because they would be backed by each euro member, he said.
France and Italy are urging Germany to take decisive action
to end the 2 1/2-year-old debt crisis after Spain’s 10-year bond yields jumped
to more than 7 percent last week, a level that economists consider
unsustainable. Leaders are at an impasse as they prepare to meet in Brussels on
June 28. That risks disaster because Europe is running out of time to show
investors it will do what’s necessary to save the euro, Soros said….
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