Billionaire investor and Democratic mega-donor George Soros on Tuesday warned that a new worldwide financial crisis could be coming, citing instabilities within the European Union and trade tensions with the U.S.
“We may be heading for another major financial crisis,” Soros said in Paris, according to Bloomberg.
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The investor believes the recent “destruction” of trade partnerships between the U.S. and EU and political tensions over President Trump’s withdrawal from the Iran nuclear deal despite the warnings of European allies are “bound to have a negative effect on the European economy and cause other dislocations.”
Soros also warned of right-wing governments that have recently come to power in Europe, saying they are working to implement austerity measures. He added that he thinks Europe is in “existential danger.”
“Everything that could go wrong has gone wrong,” Soros said. “It is no longer a figure of speech to say that Europe is in existential danger; it is the harsh reality.”
Soros offered the EU-backed Marshall Plan for Africa and changes to the EU as ways to ease some of the problems facing the continent.
Soros joins the chorus of other top financial leaders in Europe who have expressed concerns of a possible global trade war as a result of President Trump’s push for protectionist trade policies, and sky-high levels of sovereign debt.