Euro crisis: three perspectives

George Soros, the billionaire hedge fund manager and philanthropist, warned Saturday that failing to resolve the sovereign debt crisis in Europe could lead to a "real meltdown" of the global financial system.

His remarks came while on a panel with Olli Rehn, the top economic and monetary official at the European Commission, and Gao Xiqing, the head of China's sovereign wealth fund, who also commented on the debt crisis in Europe.

Soros was by far the most pessimistic. European leaders must convince voters to help the troubled euro area nations overcome their money problems.

"The alternative is a breakdown of the global financial system, a real meltdown," he said. The process has been evolving since the collapse of investment bank Lehman Brothers in 2008, Soros added, but "this time it could not be stopped because you don't have the authorities to stop it."

Euro area nations are struggling to contain the threat of a default by Greece, something many investors and economists fear could drag down other European economies and ripple across the world financial system.

The panel discussion took place on the sidelines of the annual meeting of the International Monetary Fund and World Bank, where Greece and the euro debt crisis has been the main topic of conversation. While Soros argued that the treaties governing the European Union will ultimately need to be rewritten, he seemed to suggest that the currency and monetary union will avoid a break up. (more)