Kamal Ahmed: George Soros Attacks Brussels Rescue Deal

Veteran investor George Soros has attacked the lack of leadership at the top of the euro-zone and said that the the new Brussels "deal" to solve the debt crisis will only last between "one day and three months". Mr Soros, who achieved world wide fame when he bet against sterling remaining within the Exchange Rate Mechanism in the 1990s, said that the 50pc "haircut" on private bond holders would only reduce Greek debt by 20pc. He said that was insufficient to stop an economic decline in Greece, which would lead to greater social unrest. His words come as the euro-zone appeared to be heading for further economic trouble, as investors started to express scepticism about the rescue deal announced in the early hours of Thursday morning. This weekend Goldman Sachs said that the euro-zone countries were heading for a "mild recession" as confidence waned. "Given the magnitude of the crisis, it is again too little, too late," Mr. Soros said of the Brussels deal at a dinner organized by Pi Capital investor network on Thursday. "It will bring relief partly because the markets were so obsessed by the lack of leadership. The mere fact that something was achieved was a major relief, and it will be good for any time, from one day to three months.