Billionaire investor Warren Buffett said the euro region could withstand Greece\’s departure in the currency union.
\”If it turns out the Greeks leave, that may not be a very bad thing for the euro,\” Buffett told CNBC within an interview Tuesday. \”If everybody learns the rules mean something and if they come to general agreement about fiscal policy among members, or something of the sort, they mean business, that may be a good thing.\”
Europe\’s most-indebted state is locked in negotiations with euro-area countries and also the International Monetary Fund within the terms of its 240 billion-euro (US$260 billion) rescue. The standoff, that has left Greece dependent upon European Central Bank loans, risks leading to a default within weeks and it is potential exit from the euro area.
Greek Pm Alexis Tsipras sought to rally a consensus in Parliament late Monday in Athens for an effort to secure bailout funds after proposals to boost the nation\’s finances didn\’t satisfy his European creditors. The euro extended its biggest quarterly slide versus the dollar since its inception amid the wrangling.
\”I\’ve thought that the euro had structural problems right from the moment that it was put it in, which does not necessarily mean it will necessarily fail,\” Buffett said on CNBC. \”You can adjust to those structural problems, but maybe some countries won\’t change and they won\’t maintain. It\’s not ordained the euro has to have exactly the members that it has today.\”