George Soros held CFS Presidential Lecture

10 April 2013

Germany should leave the European Monetary Union or accept Eurobonds. This was the core message of George Soros, Chairman of Soros Fund Management LLC, in Frankfurt on Tuesday. Soros gave a lecture on “How to Save the European Union from the Euro Crisis” following an invitation from the Center for Financial Studies (CFS). The event was part of the CFS Presidential Lecture Series and was visited by around 1200 people as well as numerous journalists. The discussion was moderated by Otmar Issing, President of the CFS.

According to Soros, Germany should take a leading role to combat the crisis and not just do the minimum necessary to save the Euro. The introduction of Eurobonds would reduce the interest burden in countries affected by the crisis and thereby support their economic growth. The Euro could also survive without Germany. If Germany left, the Euro would automatically depreciate, and heavily indebted Eurozone countries would regain their competitiveness.

After the lecture, Otmar Issing dissented from Soros, referring to the principle of „No taxation without representation“. The consequence of introducing Eurobonds would be that German tax payers would indirectly finance other countries’ debts, he said. This redistribution would lack a transparent vote and therefore democratic legitimacy.