Billionaire speculator George Soros has revisited his earlier plan involving perpetual bonds. Attacking Poland and Hungary for vetoing the next EU budget, Soros now suggests that perpetual bonds should be issued by individual member states. This, however, would push them into perpetual debt.
George Soros first published his plan for perpetual bonds in the spring. In his article he argued that the EU would need a new type of instrument to deal with the economic problems caused by the coronavirus. He suggested perpetual bonds, which have no maturity, so Europe, in essence, would be indebted till the end of time. Although the principal would not have to be repaid, the European Union would still have to service the annual interest rates, so in short, the bloc would never get rid of the debt.
"So, we pay as long as we live ... isn't it what they call debt servitude?" Viktor Orban asked in response to Soros's plan.
The financial proposal put forward this week could have serious consequences for the European Union. This is the second Soros Plan,...
The billionaire stock market speculator has revisited his plan for perpetual bonds after Poland and Hungary vetoed the EU's multiannual budget and post-pandemic recovery package.
"With Hungary and Poland vetoing the European Union's budget and COVID-19 recovery fund, the case for issuing perpetual bonds has never been stronger," he wrote in an article published on Project Syndicate's website.
Currently, however, it is impossible for the EU to issue perpetual bonds, because member states are too divided. On the one hand, Poland and Hungary have vetoed the next EU budget and recovery fund. On the other hand, the so-called "frugal states" are more interested in their own financial situation. Therefore, George Soros suggests that individual members should issue perpetual bonds, pointing out that the Frugal Five (Austria, Denmark, Finland, the Netherlands and Sweden) would find them particularly attractive.
Thus, Soros continues to promote his plan, while attacking Poland, and especially Hungary, in his writing.