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bbc.com

Soros warns of EU disintegration -BBC News

Image caption Mr Soros made huge profits in 1992's "Black Wednesday"

by betting against the British pound

Billionaire investor George Soros has warned that Britain's vote to

leave the European Union makes the disintegration of the bloc

"practically irreversible".

However, he called for thorough reconstruction of the EU in an

attempt to save it.

Before Thursday's UK referendum, Mr Soros had warned of financial

meltdown if Britain voted to leave.

In his latest comments, he said the effects of the decision would

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damage Britain.

"Britain eventually may or may not be relatively better off than other

countries by leaving the EU, but its economy and people stand to

suffer significantly in the short- to medium term," he wroteon theProject Syndicate website.

Mr Soros made huge profits in 1992's "Black Wednesday" by

betting against the British pound as it crashed out of the European

Exchange Rate Mechanism.

Before Friday's vote he warnedof a similar meltdown, predicting a

Brexit victory would send the pound down by 15-20%. In the event,

sterling fell about 10% to a 31-year low.

'Turmoil'

"Now the catastrophic scenario that many feared has materialised,making the disintegration of the EU practically irreversible," wrote Mr

Soros in his latest article.

"The financial markets worldwide are likely to remain in turmoil as

the long, complicated process of political and economic divorce from

the EU is negotiated."

He said the consequences for the economy would be comparable to

the financial crisis of 2007-2008.

"After Brexit, all of us who believe in the values and principles that

the EU was designed to uphold must band together to save it by

thoroughly reconstructing it," he wrote.

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"I am convinced that as the consequences of Brexit unfold in the

weeks and months ahead, more and more people will join us."

What comes next?

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Image caption The process to take the UK out of the European Union

starts with invoking Article 50 and will take at least two years from that

point

Brexit: What happens now?

What is Article 50 of the EU Treaty?

In force since 2009 but never tested

Allows governments to notify intent to leave. Talks then begin on a

range of issues between the leaving nation and other EU members

If no deal is reached, membership will automatically cease two

years after notification

The article is only a basic template for leaving, settling the date and

some other matters. It does not automatically include issues such

as movement of people or trade. The latter could take years toconclude

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