George Soros is back and he comes with another warning. The legendary investor says that the EU is on the verge of collapse post Brexit, but he is also seeing some signs of hope. Soros believes that the recent Brexit has mobilized pro EU youth and could lead to more enthusiasm for the EU across the content. He lays out four quick points that the EU should work on if they want to prevent chaos and he notes that Italy is the next domino. If Angela Merkel and others want to prevent that they need to work on four things
- Working on distinctions between EU membership and the EuroZone
- The EU must borrow more to stimulate the economy
- There must be greater focus on stopping the illegal migrant crisis
- There must be focus on security against Russia
Also, he says the EU must not “punish” the United Kingdom and lists several other “no dos” in the article.
What if the EU fails? Then George Soros says “Europe’s leaders must recognize that the EU is on the verge of collapse”
Below is a brief excerpt from the article
What the EU must not do is penalize British voters while ignoring their legitimate concerns about the deficiencies of the Union. European leaders should recognize their own mistakes and acknowledge the democratic deficit in the current institutional arrangements. Rather than treating Brexit as the negotiation of a divorce, they should seize the opportunity to reinvent the EU – making it the kind of club that the UK and others at risk of exit want to join.
If disaffected voters in France, Germany, Sweden, Italy, Poland and everywhere else see the EU benefitting their lives, the EU will emerge stronger. If not, it will fall apart faster than leaders and citizens currently realize.
The next trouble spot is Italy, which is facing a banking crisis and a referendum in October. Prime Minister Matteo Renzi is caught in a “Catch-22” situation: if he cannot resolve the banking crisis in time, he will lose the referendum. That could bring to power the Five Star Movement, a partner of the pro-Brexit UK Independence Party in the European Parliament. To find a solution, Renzi needs the assistance of the European authorities, but they are too slow and inflexible.
Europe’s leaders must recognize that the EU is on the verge of collapse. Instead of blaming one another, they should pull together and adopt exceptional measures.
If the EU makes progress along these lines, it will become an organization to which people will want to belong. At that point, treaty change – and further integration – will once again become possible.
If Europe’s leaders fail to act, those who want to save the EU in order to reinvent it should follow the lead of the young activists in Britain. Now more than ever, the EU’s defenders must find ways to make their influence felt.
Full post here