BERLIN (MNI) – The debt crisis in the Eurozone peripheral states
will be the main topic at the G20 and IMF/World Bank gathering in
Washington later this week, a senior German finance ministry official
said Tuesday.
“The main topic will surely be the situation in the Eurozone
periphery,” the source explained.
Pointing to the elevated debt levels in most major economies, the
official stressed the importance of further budget consolidation also
beyond the Eurozone.
He noted that currently only Germany, Italy, the UK and Canada were
in line with the fiscal consolidation commitments made at the Toronto
G20 summit, which call for halving public deficits by 2013 and keeping
the debt level stable by 2016.
“That is why Finance Minister [Wolfgang Schaeuble] will make very
clear [at the G20 meeting] that we will stick to our budget
consolidation course” in Germany, the official said.
“We are also of the opinion that budget consolidation must not
automatically mean weakening growth, but rather to the contrary,” he
said, stressing that Germany sees calls for short-term stimulus measures
“as not helpful.”
“You cannot fight a debt crisis by creating more debt,” the
official said, repeating the government’s mantra.
Schaeuble will also stress at the Washington gathering the need to
keep up the momentum regarding financial market regulation, the source
said. “It would be wrong to weaken the efforts for more efficient
financial market regulation,” the official said.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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