Soros Supports Ukraine
George Soros cautions that the fate of Ukraine is in the lands of the leaders of Europe right now. Given his decades of experience in monitoring and advising on international economic affairs, George Soros Ukraine feels strongly about the need to speak up for the people of Ukraine and request greater assistance for Ukraine from the EU.
Soros Explains How the EU has Changed
Soros explains that when the concept of the EU was first developed, it was sold as a way for sovereign states with a common interest in peace and prosperity to pool their resources and work for the common good. This aspiration and focus has changed thanks to the role of the euro and the changing relationship between countries as simply creditors and debtors. As a result, Soros contends that the EU has been much too focused on recovering debts and monitoring economic situations rather than promoting international peace.
George Soros – Project Syndicate
Soros Warns About Putin’s Efforts to Destabilize Ukraine
Soros has followed Vladimir Putin closely and is gravely concerned about his nationalist rhetoric. In fact, Soros sees this as much more than just inflammatory rhetoric. He explains that it is most certainly in Putin’s best interests to see Ukraine destabilized. He says that it is absolutely crucial that the EU counteract these efforts as swiftly as possible. A weakened Ukraine could easily fall victim to an aggressive Russia in coming years, if the EU does not assist Ukraine in keeping its borders strong and military defenses ready. In addition to stopping Putin in his tracks, working to stabilize Ukraine also puts the EU in a stronger position relative to Russia. This definitely plays into the long term survival of the EU and would help it regain focus on its original mission.
Encouraging Business in Ukraine
Soros is never short on economic answers to international problems. The innovative approach he proposes here is for political risk insurance for those companies and individuals considering doing business or investing in Ukraine. While this option has been offered by private companies for many years, Soros explains that they generally have to charge exorbitant premiums to cover the high risks of doing business in less stable areas of the world. To solve this problem, Soros suggests that European governments could offer the political risk insurance instead of private companies. So that no country had to underwrite more than its fair share of risk, Soros proposes that each country’s government would contribute a pro-rata capital infusion at the outset and an additional share of callable capital to be used in the event of a pay out.
Given the economic and political turbulence in Ukraine right now, Soros sees this collective political risk insurance approach as the best option for encouraging investment and economic development in Ukraine. The end goal is in the best interest of the EU, as Soros reminds us.
Learn more about George Soros: