The euro has one advocate: billionaire investor George Soros, who said in a speech that he expects the currency to survive with the aid of Germany. But he also said the euro zone's biggest economy has three months to ensure the single currency's survival.
The breakup of the euro would hurt Germany's cheap exports and destroy the vision of a united Europe and plunge the region into further economic gloom. And while Germany is seen as the strongest economy in the region, it would be left holding unpaid loans for the weaker countries, Soros said in a speech Saturday to a conference in Trento, Italy. He thinks that the authorities have three months to fix things.
The likelihood is that the euro will survive because a breakup would be devastating not only for the periphery but also for Germany. It would leave Germany with large unenforceable claims against the periphery countries, said Soros. So Germany is likely to do what is necessary to preserve the euro -- but nothing more.