Euro Could Collapse, Says George Soros

News: Soros warns that German economic policy could destroy eurozone

As the credit outlook of southern European high-deficit countries worsened, Soros said Berlin needed to switch its economic policy from deep austerity measures to a more pro-growth agenda. Chancellor Angela Merkel announced plans this month for €80bn (£66bn) in budget cuts.

Soros said: "German policy is becoming a danger for Europe, it could destroy the European project. Right now the Germans are dragging their neighbours into deflation, which threatens a long phase of stagnation. And that leads to nationalism, social unrest and xenophobia. Democracy itself could be at risk."