George Soros and The Situation in the New UkraineJune 16, 2016 - Author: steph - No Comments
Can the leaders of the European Union handle any more crises? Right now it would seem their plates are full, and yet every day another crisis seems to assert itself and vie for attention. Market guru and political analyst George Soros knows well the crises the EU leaders are facing, and he’s well aware of the ongoing nature of it all. Yet in a recent article in NY Books, Soros makes a case for bringing one issue up to the top of the list. In Soros’ view, the situation in the Ukraine is one crisis area the leaders should definitely be focusing on.
Since 2014, the Ukraine has gone through some major changes, inspired by the Maidan revolution. The “new” Ukraine is a place that is embracing new found freedoms and a chance at greater democracy and greater stability. Soros feels that this is great news and it needs to be supported by the EU with a substantial financial package. Will the leaders get on board?
Ukraine & Europe: What Should Be Done?
Yes, the package Soros proposes will be expensive. It will include political risk insurance (priced affordably) and incentives for investors. This is a key area, as Soros feels that if the Ukraine can continue to stabilize, it will become a more attractive place for investors. This in turn could help the country to stabilize further, helping the EU.
No doubt there are many serious issues vying for the leaderships’ attention, including the ongoing migration situation, the fate of the euro and the question of whether or not Britain will even stay in the EU. Can Ukraine’s situation really beat these other issues for importance?
According to George Soros Ukraine, the risk is that the Ukraine could fall into a serious, Greece-like debt situation if no support is forthcoming. This could pull down the stability of the entire EU, and that would be a very dangerous situation. Ultimately, the cost of the Ukraine becoming more unstable is much higher than the cost of offering support.
Will the leadership listen to Soros suggestion? We’ll all have to wait, see and hope for the best.
Learn more about George Soros:
Categories: Financial Advice