SOROS: GREECE AND PORTUGAL SHOULD QUIT THE EURO AND THE EU SHOULD SELL EURO-BONDS

George Soros, the US speculator turned billionaire philanthropist, has suggested both Greece and Portugal quit the European Union (EU) and the eurozone because of their massive debts.

“One has so mishandled the Greek problem that the best way forward at present might be an orderly exit” with Greece leaving both the EU and the euro common currency, he said in an interview published yesterday by the German magazine Spiegel.

He suggested the same might go for Portugal. “The EU and the euro would survive it.”

... Soros also suggested the time had come for eurozone members to accept the introduction of eurobonds.

“Whether you like it or not, the euro exists. And for it to function properly, countries sharing the currency must be able to refinance a large part of their debt under the same conditions.

Berlin is opposed to the introduction of such bonds, but Soros suggested Germany, as Europe's strongest financial partner, should be responsible for defining the rules for its introduction.

Soros, who made over US$1bil by betting against the British pound in 1992, also said he had no intention of playing the market against the common european currency.

“I am certainly not betting against the euro. Because the Chinese have a huge interest in an alternative to the dollar and will do everything possible to help Europeans save it,” he said.

EVEN A BROKEN CLOCK IS RIGHT TWICE A DAY.

MEANWHILE:

Nicolas Sarkozy and Angela Merkel will tomorrow try to thrash out a plan to tackle the financial crisis in the eurozone.

The French and German leaders meet in Paris for what is being billed as a make or break summit for the euro.

There are persistent doubts in financial markets over Europe’s ability to solve its sovereign debt crisis.

... The two leaders also look set to discuss the need for a coordinated economic policy in the single currency bloc, the launch of a euro bond, and proposals to expand the region’s emergency bailout fund.

I THINK MERKEL WILL BALK AT THE EURO-BOND:

THE EURO-BOND IS MERELY A STEALTHY SCHEME INTENDED TO MAKE GERMANY PAY FOR THE DEBTS OF OTHER COUNTRIES IN EUROPE.