BERLIN (MNI) – German Economics Minister Rainer Bruederle said
Wednesday that the euro is not threatened by the Irish debt crisis.
The situation “is surely serious, but I don’t see the euro at
risk,” Bruederle told reporters at the sidelines of an industry
conference here.
“Naturally, one has to fight the causes” of the crisis, the
Minister said. “In Greece it was a lack of competitiveness of the
economy, in Ireland it is primarily the banking sector,” he explained.
Bruederle reaffirmed the German government’s stance to make
creditors contribute to the costs of future bailouts of Eurozone member
states after the current EU rescue funds have expired in mid-2013.
However, the Minister said he had no knowledge of a reported German
government proposal that new Eurozone sovereign bonds should include
restructuring clauses next year already. Media organizations reported
that earlier today, citing a confidential government paper.
“I wouldn’t set any clear dates,” Bruederle said. “One has to enter
such a process with clear principles but also with leeway for
negotiations.”
He then added that “not every solution you hear of makes sense.”
Finance Ministry spokesman Martin Kreienbaum told Market News
International that he hadn’t heard of the reported government paper.
He stressed that Germany will not draw up a plan for a permanent EU
crisis mechanism on its own, but will only do that together with its
Eurozone peers. “We will work out a joint proposal of all 16 Eurozone
states,” the spokesman said.
Bruederle was upbeat on the economic outlook for Germany. Referring
to today’s release of strong Ifo business sentiment data, the Minister
said: “I look very optimistically into the future.”
Germany should enjoy several years “with a very good economic
development,” the Minister asserted. “The upswing is self-sustaining,”
he said.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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