George Soros, a billionaire and philanthropist, was accused of masterminding the financial plot, the goal of which is to send the European currency, the euro, down.
The scandal connected with the plot against the euro started gathering pace last week after Soros published an article in The Financial Times. The billionaire wrote that the euro may not survive the current economic crisis. He said that he was not going to take part in the affairs on the currency market and would concentrate on investments in gold instead.
The crisis, Soros believes, unveiled serious flaws in the economic structure of the European Union. The countries of the euro zone were forced to rescue their banking systems individually. Some of the EU members, like, for example, Greece, could not handle the problem well. There are also Spain, Italy, Portugal and Ireland, the financial problems of which may trigger another crisis in the region. Soros concluded that the euro would most likely collapse if no decisive measures were taken.
It goes without saying that European officials did not like such statements at all. Soros passed from words to deeds: Soros Fund Management and several other large investment funds started selling the European currency very aggressively. The situation raised serious concerns with the prime ministers of Greece and Spain – the countries that were in need of the EU’s support most.
Their concerns were not groundless. In 1992, Soros succeeded in organizing a major currency speculation which triggered the collapse of the British pound sterling. The Wall Street Journal wrote that the reduction of the cost of the euro to the cost level of the US dollar was like the deal of life for stock exchange operators. Such affairs make billionaires.
Alexander Osin, a chief economist with Finam Management, said that the euro does not enjoy the best time of its history at the moment.
“In the long term, it will be difficult for the European states to pay their debts. They will of course take measures to support the currency, which may eventually result in its growing rate. But the growth will not cancel the debts. Unlike the USA – many countries work for American debts – Europe is left to itself. The future of the dollar looks much more stable than that of the euro at this point,” the expert said.