Soros vs. Merkel at Davos

Billionaire George Soros said at the World Economic Forum in Davos that Europe did everything wrong when reacting to the financial recession in 2007. He urged Europe to issue common bonds of the euro zone instead of trying to resolve the problem with structural reforms only. Soros believes that introduction of harsh economic measures would provoke political disintegration of the European Union.

Soros and 95 other politicians, economists and businessmen filed a letter for authorities of the euro zone in October 2011, stating the need to cope with the debt crisis as fast as possible. They believe that drags may cause a collapse of the world financial system. The group called for formation of a common treasury, insisted on strengthening the system of monitoring, regulation, formation of a system for insurance of deposits, development of strategy for sustainable economic growth for states facing debt problems.

German Chancellor Angela Merkel disagrees. She insists that Germany does not want to expand its part in the European Stability Mechanism (ESM), DPA reports. Christine Lagarde, Managing Director of the International Monetary Fund, expressed support for increase of finances for the ESM. The mechanism holds 500 billion euro at the moment. Italian Prime Minister Mario Monti shares the view, believing that the sum needs to be doubled.

Mario Dragi, President of the European Central Bank, recommended allocation of unused finances of the European Financial Stability Facility (EFSF), about 250 billion euro, for the new mechanism.

Merkel warned about possible overload of the German economy. She noted that Germany is the leading economy of Europe, its overload may affect the Europe.

Azerbaijani President Ilham Aliyev is on a visit to Davos. He met Gerhard Roiss, Executive Director of OMV AG (Austria). They exchanged views on cooperation of the State Oil Company of the Azerbaijani Republic (SOCAR) and OMV AG, including the Nabucco gas project.

Austria has been concerned over the fate of Nabucco after SOCAR and BOTAS (Turkey) had initiated realization of the Trans-Anatolia Gas Pipeline (TANAP). The US expressed doubts about the Nabucco concept earlier, unless investments are invited. Austria is the final destination of the Nabucco pipeline with the gas-distributing terminal in Baumgarten.

Aliyev met Swiss President Eveline Widmer-Schlumpf. The sides expressed content with development of bilateral relations and the need for their improvement. They noted cooperation of Azerbaijan and Switzerland in energy, ecology and other spheres. The presidents exchanged views on issues of mutual interest.

President Ilham Aliyev met Israeli President Shimon Peres and discussed bilateral ties, prospects for cooperation in economy, science research and other spheres.

In a conversation with Robert Hormats, Under Secretary of State for Economic, Business, and Agricultural Affairs, Aliyev was informed that the White House praises Azerbaijani development, especially the economic and industrial reforms. The US official expressed hope that Azerbaijan’s combating corruption and increase of investments will bring positive results. The sides also exchanged views on regional issues.