Davos 2017: Soros warned Europe over disintegration danger

George Soros, on the sideline of Davos Forum, gave his views on the state of the world. The EU, according to billionaire investor, is disintegrating following last year's Brexit vote and Italian referendum, a course that must be reversed. The trading bloc has become dysfunctional because it is governed by laws that are "not appropriate to the current circumstances" and not easily changed, he said.

"If Europe breaks down, the consequences will be very dire," the investor said. "But I do see a way it could be saved, and this is also recognized by many of the people in Brussels. They can't say so publicly, but they know that Europe is not functioning."

On Brexit and Theresa May, Soros predicted the British Prime Minister's spell in power would not last long and said the UK population were "in denial" about the financial consequences of leaving the European Union.

"It's unlikely that Prime Minister May is actually going to remain in power," he said.

"At the moment people in the UK are in denial. The current economic situation is not as bad as it was predicted, they live in hope, but as the currency depreciates, and inflation will be the driving force, that will lead to declining living standards.

"It's going to take some time but when it does happen, they will realise that they are earning less than before, because wages won't rise as fast as the cost of living."

Soros lashed out against Trump as a “an impostor and con-man and a would-be dictator,” but predicted he would not succeed in destroying the pillars of American democracy.

“I’m confident that the Constitution and the institutions of the United States are strong enough, the division of power is in operation. And he would be dictator if he could get away with it, but he won’t be able to.”