German finmin Schaeuble says that Germany is prepared to take steps toward fiscal union if that is what it takes to halt the European debt crisis.
“All European countries are determined to keep this European currency stable, and we have the means to do it,” Mr. Schäuble said. “Sometimes it takes crises so that Europe moves forward. In this crisis, Europe will find steps toward further unification.”
Schaeuble is in no hurry to forge a fiscal union, however, hoping steps taken already will be sufficient to quell the spreading crisis.
“Under the present structure, with unified monetary policy but not fiscal policy, different interest rates [on government bonds] are the mechanism that makes member states adhere to solid public finances,” he said. “We want to improve the structure that we have. If this structure doesn’t work, then we must indeed talk about alternatives, but in that order.”
The euro may get a boost on Monday from the German policy shift.
