26 Jun 2012

Soros says Germany's euro stance damaging

9:45 pm on 26 June 2012

American billionaire George Soros says Germany must change what he calls its "can't do" policy and endorse the immediate creation of a consolidated European fiscal and banking union.

Mr Soros says otherwise Germany risks becoming the centre of an empire responsible for the eurozone's collapse.

Writing in the British newspaper The Financial Times, Mr Soros says this week's summit of European Union leaders could turn into a fiasco because of Germany's stance.

He says a European fiscal authority in partnership with the European Central Bank could establish a debt reduction fund that would acquire and hold a significant portion of the outstanding stock of Italy and Spain's debt.