The billionaire investor was a strong supporter of Brexit and fears other member states such as Italy will soon follow suit. Asked about Brexit, Mr Soros said: “There is no point in crying over spilled milk. But the question of how to stop other countries from following the UK is important.”
He continued: “I am particularly concerned about Italy. Matteo Salvini, the leader of the Lega party, is campaigning for the country to leave the euro and the EU.
âFortunately, his personal popularity has waned since leaving government, but his advocacy is gaining momentum.
But he said splits started to emerge when Brussels failed to offer adequate support to Rome at the height of the Mediterranean migrant crisis, then slapped it in the face by easing state aid rules. for the benefit of richer countries like Germany.
The EU’s response to the coronavirus pandemic has been the last straw for many Italian voters who see their country punished by Brussels for a crisis that was not their fault.
Mr Soros said: “Italians trusted Europe more than their own governments, and with good reason.
READ MORE: EU crisis: Cracks in Brussels appear amid euro zone warning in Italy
“But they were mistreated during the 2015 refugee crisis. The EU enforced the so-called Dublin regulations which put the full burden on the countries where refugees first landed and did not offer no sharing of the financial burden.
“That’s when the Italians decide to vote for Salvini’s Lega and the Five Star Movement in a landslide.
“More recently, the relaxation of state aid rules, which favor Germany, has been particularly unfair to Italy, which was already the sick man of Europe and then the hardest hit by COVID- 19. “
Mr Soros, who rose to prominence by betting against the pound sterling in 1992, said: “There is a solution. Taxes only need to be allowed, they don’t need to be applied.”
Perpetual bonds or consols were first used by the United Kingdom to finance the Napoleonic wars.
As its name suggests, the capital of a perpetual bond never has to be repaid, only annual interest is due.
Thus, a bond of 1000 billion euros would cost 5 billion euros per year, assuming an interest rate of 0.5%.