BERLIN (MNI) – German Finance Minister Wolfgang Schaeuble on
Tuesday strongly rejected calls by the International Monetary Fund for
an introduction of eurobonds in the Eurozone.
“This would be wrong,” Schaeuble said at a panel discussion
organized by the German Banking Association (BDB). The minister argued
that joint bonds would weaken incentives for countries like Spain or
Italy to continue on their harsh austerity path.
Schaeuble said he had no doubt that the EU’s Fiscal Compact, which
makes budget consolidation mandatory, “will be ratified in all
countries.”
The minister again argued that a quick deficit reduction in the
Eurozone will strengthen economic growth forces. “We are on track to win
back the confidence of the markets,” he reckoned.
Luxembourg Finance Minister Luc Frieden, speaking on the same
panel, said the Eurozone “is in a difficult process where there do not
exist simple solutions.”
In other remarks, Schaeuble again acknowledged that there is no
chance for an introduction of a financial transaction tax at the
European level in the foreseeable future.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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