The European Union is the only solution to the economic crisis in Ukraine according to investor and philanthropist George Soros Ukraine. In 2014 Ukrainians held protests to remove the then president Victor Yanukovych from power and pave way for new reforms that would stabilize the nation politically and economically. The new Ukraine is intent on becoming democratic and working closely with European nations. The citizens have showed their patriotisms by abandoning good jobs in favor of serving their country. One such patriot is Natalie Jaresko who decided to stop working as an investment banker and serve as the country’s new finance minister, despite the pay being considerably low.
The new reforms are to face many challenges and implementing them is not going to be an easy task. The supporters of the new reforms are up against the conservatives from the old Ukraine. The Russian president Vladimir Putin is also against the new reforms and this is manifested through his aggression towards Ukraine, a move aimed at destabilizing the nation. For the reforms to be successful Ukraine needs urgent financial help from western powers which also have to provide additional sum to counter the Russian aggression. There is a glimmer of hope considering that sanctions imposed on Russia by Europe and USA have negatively impacted on the Russian economy. The effectiveness of the sanctions has been boosted by the decline in the price of oil. According to George Soros the current Russian financial crisis is similar to the one of 1998.
George Soros – Business Leader, Philanthropist
George Soros – Forbes
The damage done on the Russian economy however has a global effect and most of the European countries are affected. This complication has prompted European Union to make reforms and look for other policies that can best deal with the Ukrainian-Russian problem. George Soros advises that sanctions are a necessary evil since it is the only way to deal with Russia’s aggression to Ukraine. The other option is war with Russia, and that would be a riskier approach for the US and the European Union. The only problem is that sanctions imposed on Russia also affect the countries imposing them and this is likely to cause deflation in Europe. Financial assistance from the European Union to Ukraine is meant to stabilize her economy thereby encouraging investment. This would put Ukraine in a better position to defend itself against aggression from Putin’s government.
European leaders however do not seem to see the importance of Ukraine to the euro given its financial crisis. Most of them see it as just another country in need of financial assistance. In the Association agreement between the EU and Ukraine (2007-2012) Ukraine was advised on what to do to merit financial assistance. Ukraine’s problems slowed down Europe’s willingness to help. This included its poor track record with other IMF programs. Lenders decided to provide assistance only because of the reforms to be undertaken by the new Ukraine. Another was the fact that Ukraine was not a member of the European Union. This made it difficult for European institutions to directly offer any assistance.
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Venezuela seems as though it is on the verge of a complete collapse. With the scare of the zika virus now spreading across the country people are fearful of catching the strange and relatively unknown virus that is affecting newborn babies. Also Dr. Norka Luque says, Venezuela is suffering a catastrophic health care crisis from lack of funding and medicine causing patients to needlessly die.
Amidst all that chaos Venezuelans are now taking to the streets in protest, clashing with police trying to demand a recall of President Nicolas Maduro’s term. During all the chaos of protesters, riots have ensued in the streets of Caracas. One woman was even shot and killed during the rioting.
In a report by Dateas, as protesters have descended on the Capitol for the fourth time in as many weeks, they were stopped in their tracks by police in full riot gear. Even though mediation efforts are in session between opposition forces and the Venezuelan Government, protesters feel that this is only a stalling tactic so that the referendum will not be met in time for any governmental changes this year.
The 2008 economic slowdown proved a disaster for all those involved, and the people of the world who were caught up in the problems many blame on Wall Street for causing. Bloomberg reports hedge fund manager George Soros recently revealed his own fears that the current economic climate is replicating that of 2008, which could leave the entire world on the brink of a second major collapse. The global economy is something George Soros is an expert in as he has seen his own hedge fund grow at a rate estimated at over 20 percent anualy for more than three decades.
George Soros sees the problems in the European Union as a major part of the issues facing the economy of the world that Soros believes are being driven by Russian President Vladimir Putin. Alongside the debt problems facing Greece and Russian aggression in Ukraine, George Soros believes Putin has seized upon the refugee crisis caused by Russian bombing in Syria to push for the collapse of the European Union. Soros keeps a close eye on the refugee crisis in Europe as he himself was left a refugee after surviving the Holocaust in his native Hungary; George Soros is a success story for all refugees to enjoy as he traveled across Europe to London and later to New York to start his successful financial career.
At an economic forum in Sri Lanka George Soros revealed his fears that the global economy is on the verge of collapse, which has as much to do with China as it does with problems in the European Union. China has been facing problems for a number of years, but has so far masked these with low interest rates and infusions of currency; however, George Soros believes Chinese officials are jumping from one crisis to the next without solving any they face, a similar option to those taken by officials within the European Union. Unless officials in China manage to change the way they react to a changing economy the global economy could collapse as China plays an important role in many different countries financial health through its numerous trade agreements.