BERLIN (MNI) – German Economics Minister Philipp Roesler on
Thursday warned that a break up of the Eurozone would heavily hurt the
global economy.
“A failure of the euro would have enormous repercussions for the
global economy,” Roesler said at an OECD conference here, noting that
the euro is currently the second largest global reserve currency behind
the dollar.
“Europe is facing enormous challenges,” the minister acknowledged,
arguing that the current debt crisis has its roots in the financial
crisis, which started in 2007. The reforms of the financial system
undertaken since then have not been sufficient yet, he criticized.
OECD Secretary General Angel Gurria, speaking at the same
conference, warned that “there is very little room” for fiscal and
monetary policy to counter the crisis. “The only way we can go is
structural,” he reckoned.
Gurria argued that the German debt brake “is probably the most
credible way to convince markets.”
The OECD head warned, though, that there are problems ahead for
Germany’s export-dependent economy, given that international trade is
stalling at the moment.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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