Legendary US investor Warren Buffett expects difficult times for Europe after voters in France and Greece rebuffed governments that have backed austerity policies.
"It's going to be very, very difficult to resolve their
problems," the 81-year-old told broadcaster CNBC on Monday.
One of the world's richest people, Buffett declined to give a
prognosis for the next two or three years in Europe, but said he
expected a "lot more episodes." He said that the election results
were not unexpected.
"It's not surprising. I mean, you tell people to tighten their
belts, and then you give them a chance to vote on it," Buffett said.
In the past, the Berkshire Hathaway boss has pointed to
fundamental flaws in the eurozone. On Monday, Buffett said the real
problem was dealing with 17 countries sharing a currency but lacking
"somewhat common fiscal policies."
The billionaire was upbeat about Europe's long-range prospects
over the next 10 to 20 years. It has a "huge market" and people with
"lots of skills" and "wonderful companies," he said.
"So it isn't like it's the end of the world, but it can be a very
messy process in getting from here to there."
Buffett welcomed the drop in stock values that followed the
European elections, saying he never complains "about buying things
cheaper."
