BERLIN (MNI) – German Finance Minister Wolfgang Schaeuble said
Monday he was not worried about the fact that interest rates on German
government bonds have risen somewhat lately.
“Interest rates are still at a historically low level,” Schaeuble
said at a panel discussion here. “We shouldn’t exaggerate things.”
The minister said he was more worried about too much liquidity
worldwide, which might lead to new bubbles on markets.
Schaeuble once again stressed his opposition to the idea of issuing
collective Eurobonds to aid Eurozone members struggling with high debts
and borrowing costs.
Eurobonds would only reduce incentive for these governments to
conduct sound fiscal policies, the minister argued. “If we introduced
Eurobonds, doubts in markets over the long-term stability of the euro
would even increase,” he reckoned.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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