–Unemployment, New Borrowing Lower Than Foreseen
FRANKFURT (MNI) – Economic developments in Germany have been
stronger than expected, with a positive impact on public finances,
Finance Minister Wolfgang Schaeuble said Thursday.
“New borrowing will not be as dramatic as imagined at the end of
last year,” the minister told a banking conference here. “We have a good
chance this year that new borrowing will drop below E60 billion.”
The country can be “confident” that unemployment could drop below 3
million, Schaeuble said. “Here in Germany we have a trend that is better
than we could have hoped at the beginning of the year.”
German GDP surprised even the most optimistic forecasters with a
2.2% jump in the second quarter. Most experts, however, expect a slowing
of the trend in coming months.
One lesson from the crisis is the need for tougher financial market
rules, Schaeuble reminded.
Mentioning the widely watched negotiations currently taking place
in Basel over new banking regulation, Schaeuble intoned, “We want
tougher capital and liquidity rules.” But he also cautioned that the
ability of the financial sector to fund the economy must not be
endangered.
Germany made international headlines earlier in the year with its
ban on naked short-selling of certain financial products. Schaeuble
again defended that decision, comparing the practice to match-fixing in
sports. He also supported the prohibition of practices that encourage
abuse of the market
–Frankfurt bureau; +49-69-720142; frankfurt@marketnews.com
[TOPICS: M$G$$$,M$X$$$,MGX$$$]
