By George Soros
THE NEW YORK REVIEW: Preface: In a fast-moving situation, significant changes have occurred since this article went to press. On August 1, as I write below, Bundesbank President Jens Weidmann objected to the assertion by Mario Draghi, the president of the European Central Bank, that the ECB will “do whatever it takes to preserve the euro as a stable currency.” Weidmann emphasized the statutory limitation on the powers of the ECB. Since this article was published, however, it has become clear that Chancellor Merkel has sided with Draghi, leaving Weidmann isolated on the board of the ECB…
The euro crisis has entered a new phase. The continued survival of the euro is assured but the future shape of the European Union will be determined by the political decisions the member states will have to take during the next year or so. The alternatives are extensively analyzed in the article that follows….
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In my judgment the best course of action is to persuade Germany to choose between becoming a more benevolent hegemon or leaving the euro. In other words, Germany must lead or leave… (more)
EDITOR: For those who have craved a thoughtful and detailed analysis of the euro crisis and alternative remedies, we highly recommend this challenging article.
