George Soros, a critic of the way German Chancellor Angel Merkel handled the euro crisis, has said that Merkel is key to solving the current migrant crisis. He says that Merkel had foreseen the problem that the migration crisis could create; breaking down the Schengen system of open borders and undermining the common market. Though she managed to convince and change the attitude of the public towards the refugees, her plan of resolving the issue was not properly prepared and has not resolved the issue. Instead it led to her loosing popularity even in her own party. Soros agrees that Merkel decision at that time could have been the right thing to do. But that does not change the fact that the whole Schengen agreement is under threat.
Though Merkel changed her decision on the issue and said that Germany has reached its limits in accepting refugees, she has defended her policy. According to Merkel, the decision to accept migrants had been “humanitarian imperative” when the crisis was at its peak. The change of heart was pushed by her party rebels who have been demanding that she close the borders or impose a regulation that will limit the number of refuges allowed into the country. Merkel has also been blamed for the tendency to delay decision making and only doing the bare minimum at the last minute.
According to Soros, with a better plan, movement of migrants can continue to take place in a safe and orderly manner and also at a pace that Europe can well be able to handle. The plan can also be extended beyond Europe’s borders hence it will be less disruptive and less expensive for the asylum seekers. Finances can be raised through the issue of Long-term bonds using the untapped AAA borrowing. The responsibility of repaying can then be divided among the member states that accept refugees.
He also spoke about the Greece crisis which he believes was mishandled. On the onset of the crisis towards end of 2009, Germany led the EU in trying to rescue Greece by providing loans. The problem was the interest charged was too high and it made the Greek National Debt unsustainable. The mistake has been made yet again in 2015 after the EU imposed on Greece conditions that will not help in sorting out its crisis but push it further into depression. This has made Greece appear to be unattractive to investors.
Under Merkel’s leadership, the European Union can offer the financial assistance needed by Ukraine. He says that with financial assistance, the country can become a lucrative destination for investors. According to him Ukraine is one of the most valuable assets that Europe currently has. The country can help Europe resist Russian aggression and also revive the spirit of solidarity that defined European Union in its early days. He also says that Britain’s exit from the EU will hurt both the EU’s and UK’s interest and especially the benefits gained from the common market.
Tyler Durden (21 Jan, 2016), George Soros:”Europe Is On the Verge of Collapse”. Zero hedge. Retrieved from: http://www.zerohedge.com/news/2016-01-20/george-soros-europe-verge-collapse