Update: Germany To Push For Eurozone Balanced Budget Rule: FT

View Comments

–Adds detail on the German plan from weekly Wirtschaftswoche

FRANKFURT (MNI) – Germany will push other Eurozone countries to
adopt laws requiring that budgets be at or near balance, the Financial
Times reported Monday, citing a government source.

Something similar to Germany’s “debt brake” law, which requires
that the federal budget deficit be no more than 0.35% of GDP by 2016,
“would be a good idea for other countries to have — although it might
take on different shapes and forms for each member of the Eurozone,” the
source told the paper.

The law has been a part of Germany’s constitution since last year.

The idea of a debt-limit law at the European level also received
support from Austria’s Finance Minister, Josef Proell. He told Germany’s
Die Welt that “considering the high debt in Europe, I am in favor of a
European debt-brake law.”

“This would lead to a clear cap on new debt, to stricter budget
discipline, and ultimately to balanced budgets in Europe,” he explained.

German business weekly Wirtschaftswoche said Schaeuble will present
Germany’s demand for Eurozone-wide deficit limitation laws at the EU
working group on reform of the European Monetary Union, to be held on

The Minister will also call for tougher sanctions against Eurozone
members that breach the EU’s Stability and Growth Pact, the magazine
reported. Schaeuble wants violating countries to lose their voting
rights in the EU for at least one year.

Schaeuble will also reaffirm his call for an orderly insolvency
procedure for Eurozone states, the magazine reported.

–Frankfurt bureau; +49-69-720142; frankfurt@marketnews.com

[TOPICS: M$$EC$,M$X$$$,M$G$$$,MGX$$$,M$$CR$]


All|Economic Data

Market News International


© Copyright 2015 ForexLive™  |  Advertise With Us  |  Login To Comment  |  Sitemap

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

ADVISORY WARNING: FOREXLIVE™ provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect's individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE™ specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE™ expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.