In May of 2014, George Soros pointed out that the voters of Europe were dissatisfied with the way the European Union was operating and how the Ukrainian people exhibited their desire to associate with the EU. The desire stemmed from a need to receive some type of debt relief from its EU creditors and Soros argued that helping Ukraine would help all of Europe.
The original formation of the EU was for sovereign nations to build closer relationships for the common good of Europe, according to Soros. However, as the years passed more countries went into deeper debt, especially after the euro crisis. This transformation caused many countries to assert their dominance as creditors to countries that were their debtors. Ukraine faced a heavy debt burden and was on the verge of defaulting on all of their debt. The country considered the threat of default in an attempt to receive debt relief from the EU and the United States.
However, at the time Putin did not realize the assistance from the EU would easily place the spotlight on Ukraine and compare favorably to Crimea. The problem was the EU needed to immediately respond to Putin’s attempt to weaken Ukraine. There were big roadblocks in place because of the rules that bound the European Union, which limited the amount of assistance Ukraine could receive from governments in the EU.
The Greatest Investors: George Soros
Soros argued that the EU should offer some type of “political risk insurance” to any government or private investor willing to inject capital into debt-ridden Ukraine. By offering insurance, Soros believed that other investors would follow suit and inject more capital into Ukraine, thereby stabilizing the country’s economy and opening up a promising market that would thwart Putin’s attempts to destabilize the country.
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