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George Soros did not bet against the pound this time


In a somber post at Project Syndicate, Soros, who rose to prominence by speculating against the British pound—immortalizing him as the man who broke the Bank of England—speculated that the U.K.'s referendum to split from Europe's common market is likely to hasten the breakup of the entire EU.





'We must not give up'

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Soros, a polarizing figure who is known for financing left-wing causes, is an enthusiastic backer of European integration. In 1992, by betting against sterling, he dealt a fatal blow to Britain's participation in Europe's exchange rate mechanism—the precursor to the single currency.

The billionaire also appears to be profiting from the turmoil stemming from the U.K.'s vote.

Last week, CNBC reported that Soros and fellow "macro" fund manager and Stanley Druckenmiller, who also runs a private firm managing family money through investments in a range of assets, hold bullish positions in gold. Bullion is a safe-haven asset that rises during times of market volatility, but exactly how those positions are performing for both men aren't yet clear.

Brexit "is sure to be fraught with further uncertainty and political risk, because what is at stake was never only some real or imaginary advantage for Britain, but the very survival of the European project," he added. "Brexit will open the floodgates for other anti-European forces within the Union."

Already, political opposition is mobilizing in other countries opposed to further European integration. Barely a day after the U.K. referendum, parties in places like the Netherlands and Austria suggested they might hold votes of their own.

A report in the U.K. publication The Express said the German government was bracing itself for the possibility of at least 5 more countries threatening to leave the EU. In his article, Soros said a potential threat also comes from Italy, where the populist Five Star Movement may rise to power as a "full blown banking crisis" looms.

The billionaire ended on a slightly optimistic note by saying that proponents of European integration "must not give up. Admittedly, the EU is a flawed construction."


--CNBC's Kate Kelly contributed to this article.