Soros warns Ireland not to leave eurozone

Published on 13 April, 2008. By John Reynolds

BILLIONAIRE currency speculator George Soros – the man who broke the Bank of England – has warned Ireland not to pull out of the euro.

“I doubt that Ireland would benefit from withdrawing from the euro. It wouldn’t allow you to escape the common fate that is facing you,” he told the Sunday Independent.

The comment will strike a pessimistic note with Ireland’s multinationals and exporters, who are being battered by the strength of the euro against both sterling and the dollar.

Having made an estimated $1.1bn (€695m) from breaking the Bank of England on ‘Black Wednesday’ in 1992, Mr Soros made the comments after bleakly observing that the world is facing its worst financial crisis since the Great Depression of the 1930s.

“The financial crisis is beginning to have a serious effect on the real economy, and the extent of that has not yet been fully recognised,” he said, echoing similar comments made this week by European Central Bank President Jean-Claude Trichet.

On a more positive note, Mr Soros added that although foreign investment here is slowing down, Ireland has been one of the most successful members of the EU.

“To some extent Ireland, which has a high-tech manufacturing niche sector, will have a degree of resilience during the current crisis,” he added.  




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