Buffett Sees “Very Difficult” to Solve the Problems of the Euro Zone
The Billionaire Warren Buffett said today that the eurozone is going to be “very difficult” to solve its financial problems, but added that after “some pain” and “several episodes cumbersome” not cited, European countries will grow back .
“Europe is going to be very, very difficult to solve their problems. Not just about having 17 countries, but the problems with which these countries have to agree and coordinate actions. It is a very difficult problem,” said Buffett in an interview with CNBC television.
Buffett, whose Berkshire Hathaway group held last weekend its annual shareholders meeting, adding that in any case, “Europe will not disappear” because it is “a big market, big business,” and was convinced that ” in ten or twenty years “the euro zone will produce” more goods per capita. ”
“It will not be the end of the world, although it can be a very complicated process to return to growth, but will reach that point,” insisted the third richest man in the world according to Forbes, for whom the solution to the crisis did not come ” without some pain. ”
Known for some of his accurate economic forecasts, Buffett was not surprised by the election results in France and Greece on Sunday, and said it showed “how difficult it is to have 17 countries in favor of such measures” to solve the crisis.
“Not surprisingly (change). If you make people tighten their belts and then allow them to vote against it (…) The real problem is dealing with 17 countries. You need these 17 countries will in the same direction, “Buffett said after the victory of socialist Francois Hollande in France and the thud of the traditional parties in Greece because of the austerity program.
The billionaire investor said that “America is in a different way” very different from Europe because, in his view, the problems of financial institutions in your country are solved and have a better position than Europe because of the actions taken by the Government at the beginning of the crisis.
Buffett said the U.S. had a better structure to respond to the problems of banks and, through them, their situation has been solved.
He said the U.S. economy will continue to improve, albeit at a slow pace, noting that there will be no significant improvement until the recovery pace of construction and improve the housing market.
Buffett said his group is buying shares in two U.S. companies, which prevented identification, noting that the November elections in the U.S. will be “close races” between President Barack Obama and Republican nominee, Mitt Romney.
Category: Business News
