Soros: European recession next year "almost inevitable"

Europe faces almost inevitable recession next year and years of stagnation as policymakers' response to the euro zone crisis causes a downward spiral, according to billionaire investor George Soros.

Flaws built into the euro from the start had become acute, Soros told a seminar, warning that the euro crisis could have the potential to destroy the 27-nation European Union.

"The commercial paper market, for instance, in America is now refusing to lend to European banks so there is even a funding crisis and the ECB (European Central Bank) has to step in and the banks are unwilling to lend to each other," he said.

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http://www.reuters.com/article/idUSTRE65E5K520100615?loomia_ow=t0:s0:a49:g43:r2:c0.108588:b34914706:z0