Billionaire investor George Soros claimed in Davos that while there’s the chance of euro’s collapse, believes that this won’t happen.

According to Soros, nowadays there is the 2-speed recovery in Europe – countries with surplus are moving forwards, while the ones with deficit struggle under the burden of high debts. The adoption of the common currency led to divergence but not convergence of the region’s economies.

As for Britain’s prospects, Soros warns that UK government's austerity policy could push the country back into recession. The biggest threat to the UK economy, in his view, is a deflationary trap, where rising debt and falling prices reinforce each other in a hugely damaging spiral.

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