— Sees Wide Recognition Of European Progress At IMF Meeting
TOKYO (MNI) – The latest ratings downgrade of Spain is based on
misconceptions, German Finance Minister Wolfgang Schaeuble told
reporters on Friday at the annual meetings of the International Monetary
Fund and World Bank Group.
“Time and again we see misconception such as the downgrade of
Spain”, Schaeuble said, pointing to S&P’s latest downgrade.
Earlier this week, Standard & Poor’s cut Spain sovereign debt
rating to BBB- from BBB+, citing the backtracking by Eurozone partners
on a pledge to sever the link between the national government and
domestic banks as it considers a second bailout.
European policymakers are using the meetings to explain policies of
the currency union with some success, he said.
“Everyone … recognized that Europe has made significant
progress,” Schaeuble said. “This time there is a much more positive
general mood” on developments in the Eurozone.
Schaeuble said that the “global economy is still weak” and stressed
that the “key is to reduce the causes” that sparked the current crisis
in the first place. The German finance minister has previously rejected
calls for more expansive fiscal policies.
On the reform of IMF quotas that determine a member’s voting power
in IMF decision-making, Schaeuble said while Germany is ready to make
its contribution, the degree of openness of an economy must be taken
into account in determining the weighting.
–Frankfurt bureau tel.: +49-69-720 142 Email: jtreeck@mni-new.com
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