Billionaire investor George Soros warned on Tuesday that Europe is in “existential danger,” and cited President Donald Trump’s actions as part of a recipe that could lead to the next major financial crisis.
“In recent weeks not just Europe but the whole world has been shocked by President Trump’s actions. He has unilaterally withdrawn from a nuclear arms treaty with Iran thereby effectively destroying the transatlantic alliance,” Soros said during a speech before the European Council on Foreign Relations in Paris, adding that the decision will put added pressure on “an already beleaguered Europe.”
Soros, the founder and chair of pro-democracy organization Open Society Foundations, went on to say that the disintegration of both the nuclear deal with Iran and the transatlantic alliance will have negative effects on Europe’s economy, potentially leading to another “major financial crisis.” He cited the strength of the U.S. dollar and the consequent flight from emerging market currencies as initial repercussions.
The business magnate said the “existential crisis” facing Europe has been spurred by three main challenges: migratory pressures, territorial disintegrations – like Brexit – and its austerity policy. All of these items have led to the election of populist politicians, he said.
In order to relieve some of the pressures the EU now faces, Soros outlined a Marshall Plan, under which the EU would provide 30 billion euros each year to Africa in an effort to help alleviate the migratory challenges. He also said the alliance should stop forcing members to join the euro.