Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Spain, Portugal woes unlike Greece-German minister

Published 04/29/2010, 01:43 PM
Updated 04/29/2010, 02:08 PM

* Spain, Portugal problems unlike those in Greece-Bruederle

* Call for new rules for EU members to get structural help

By Rodrigo Viga Gaier

RIO DE JANEIRO, April 29 (Reuters) - The fiscal problems of Spain and Portugal are different from those of Greece, German Economy Minister Rainer Bruederle said on Thursday.

Rating agency Standard and Poor's slashed Greek debt to junk status and downgraded debt from Portugal and Spain this week, raising fears that contagion from Greece's fiscal crisis would spread. [ID:nLDE63P0LU] and [ID:nLDE63R115]

"I look at the situations of Portugal and Spain in a different way," Bruederle told reporters in Rio de Janeiro.

"On my way back to Germany I'll stop in Lisbon and keep talking to Portuguese representatives to learn about the situation in Portugal," he added.

Bruederle said the main goal of help from the International Monetary Fund and the European Commission to Greece is to contain the problems to that country and avoid a spillover to other euro zone nations.

"We want to limit the crisis to Greece," Bruederle said.

The European Commission was unable to foresee or prevent the Greek fiscal crisis, which has roiled markets for months, because much previous Greek economic data had been incorrect, Bruederle said.

"They (Greece) spent outside their means and need to choose another path," he said.

The German government is pushing for Athens to swallow a tough budget austerity plan in order to receive aid -- a drive it hopes will assuage popular resistance in Germany to helping Greece and also deter other euro zone states from seeking help.

The euro zone needs new rules to ensure stability, Bruederle said.

"We'll have to add other rules and consider the possibility that members that don't follow the rules will not receive structural help from the European Commission and will have their voting rights suspended until they return to following the rules," he said. (Writing by Luciana Lopez; Editing by Padraic Cassidy)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.