Soros, China's Gao tell Europe to act on debt crisis

WASHINGTON, Sept. 24 (Xinhua) -- Heavyweight investors including George Soros and China Investment Corporation's Gao Xiqing on Saturday weighed in on the European debt crisis, calling on the Eurozone to take more decisive action in combating the debt problem that threatens to lead to a painful slowdown of global economy.

Soros said in a discussion in Washington that the debt crisis facing the Eurozone is even more serious that the one the world faced in 2008, as European countries don't have a central authority like the U.S. Treasury to "control" the crisis.

Soros made the remarks on the sidelines of the annual meetings of the World Bank and International Monetary Fund (IMF) held in the U.S. capital. While the European crisis worry many who participated in the meetings, Soros warned if it is not brought under control, it will lead to a new credit crunch and slowdown of the global economy.

Gao, vice president and chief investment officer of China's sovereign investment fund, who also took part in the discussion alongside Soros, agreed that the situation in Europe is serious. He said to change the situation, Europe needs to rethink its way of spending and living, while change some elements of its system that encourages borrowing money beyond one's means.

IMF Chief Christine Lagarde and World Bank President Robert Zoellick have called on Europe to act and leaders to show political will in the meetings. Soros said European leaders have to do more than that and create a pan-Eurozone Treasury.