Gorge Soros said at an Economist conference in London that he believes the U.K. will be in a far better position to manage its finances than the Eurozone, once upcoming U.K. elections are past.
That’s because the U.K. runs its own monetary policy, for just itself, thus has more policy flexibility.
This flexibility may be constrained by election season right now, but it seems he’s saying that once elections are done we could see a more assertive U.K. government:
Soros said the lack of concessions offered in a rescue package for Greece agreed this week had highlighted the lack of effective policy making in the euro area.
‘Whoever wins the election will have many more tools at their disposal,’ he said of the UK. ‘The solution offered to Greece is at best an interim step. ‘
It is a question of solvency. If you start charging very high rates as the market does in anticipation of solvency then that pushes you into insolvency.’
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