BERLIN (MNI) – German Finance Minister Wolfgang Schaeuble cautioned
Thursday that the latest joint efforts on the part of central banks to
supply additional dollar liquidity would not resolve the Eurozone debt
crisis.
On Wednesday “you could see a good example of how markets are
overreacting,” Schaeuble told reporters here. “Nobody, expect for a few
media reporters, believes that with yesterday’s central bank decision
all problems are solved.”
The minister warned that the current economic environment is
“fragile” and “and things can also develop less positively” than
expected.
Schaeuble repeated his proposal that all Eurozone member states set
up national funds to receive all debt above 60% of GDP. Governments
could thus signal to the markets that they are serious about bringing
their debt back into line with EU regulations. However, this would not
be a joint Eurozone or EU fund.
The minister reminded that Germany had done this in the 1990s with
the debt resulting from the reunification process.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
[TOPICS: M$X$$$,M$G$$$,MFGBU$,MFX$$$,MGX$$$]
