By Johanna Treeck
WASHINGTON (MNI) – The crisis continues to threaten the
liquidity and solvency of financial institutions and whole countries in
the Eurozone and there should be ongoing fiscal adjustment efforts,
German Finance Minister Wolfgnag Schaeuble said Saturday.
“There is substantial progress in reducing deficits in Europe. But
the crisis is still threatening the liquidity and solvency of financial
institutions and whole countries. This is why — for us Europeans — it
is so important and crucial to pursue credible fiscal adjustment,” said
in remarks prepared for the IMFC meeting.
Schaeuble said that the “successful fiscal reform and sustainable
growth are important to be able to exit from very expansionary and
unorthodox monetary policies.”
“We all know that such policies are not without serious risks
especially if maintained for too long,” he cautioned.
Schaeuble turned the tables on the U.S. that has been pushing
Europe to be more aggressive in fighting its crisis.
“Not only Europe is facing major fiscal challenges, the United
States and Japan in particular need to tackle their public deficits and
debt,” he said. “This requires a credible medium-term strategy. We
understand the political constraints but there is no way around it and
there is urgency.”
–Frankfurt bureau tel.: +49-69-720 142 Email: jtreeck@marketnews.com
** MNI Washington Bureau: 202-371-2121 **
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