The billionaire said the priority must be to “save the European Union in order to radically reinvent it”.
He added: “The first objective, saving the European Union, has to take precedence because it is in existential danger. But we wouldn’t forget about the second objective either.
“The reinvention would have to revive the support that the European Union used to enjoy. We would do it by reviewing the past and explaining what went wrong and how it could be put right.”
Mr Soros, speaking at the Brussels Economic Forum said the crisis was being brought about by growing euroscepticism and “hostile powers”.
The EU is surrounded by hostile powers
He said: “Externally, the EU is surrounded by hostile powers – Putin’s Russia, Erdogan’s Turkey, Sisi’s Egypt and the America that Trump would like to create if he could, but can’t.”
He added major reforms were urgently needed to protect the bloc.
George Soros called the EU 'dysfunctional' Brexit day: images from around the country as Britain invokes Article 50 Mon, April 3, 2017
The country reacts as Theresa May officially invokes Article 50, and begins the process of Britain leaving the European Union
EPA 1 of 22
Pro-EU demonstrators protest outside Parliament
The financier said: “Internally, the European Union has been governed by outdated treaties ever since the financial crisis of 2008.
“These treaties have become less and less relevant to prevailing conditions. “Even the simplest innovations necessary to make the single currency sustainable could be introduced only by intergovernmental arrangements outside the existing treaties.
Get Quotes on Home Insurance
“That is how the functioning of European institutions became increasingly complicated and gradually rendered the EU itself dysfunctional in some ways.”
He added the eurozone had become the “exact opposite of what was originally intended”.
He said: The European Union was meant to be a voluntary association of like-minded states that were willing to surrender part of their sovereignty for the common good.
“After the financial crisis of 2008, the eurozone was transformed into a creditor/debtor relationship where the debtor countries couldn’t meet their obligations and the creditor countries dictated the terms that the debtors had to meet.
“By imposing an austerity policy they made it practically impossible for the debtor countries to grow out of their debts.
“The net result was neither voluntary nor equal.”