Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UPDATE 1-German FinMin-eurozone hasn't convinced markets yet

Published 05/19/2010, 02:25 AM
Updated 05/19/2010, 02:27 AM

* Says all euro zone states must reduce deficits

* On Greece, says expects every country to repay debts

* Says chances of global transaction tax slim (Adds quotes, background)

BERLIN, May 19 (Reuters) - Euro zone states must cut their deficits to win the confidence of financial markets, which remain sceptical about the currency area's fiscal health, German Finance Minister Wolfgang Schaeuble said on Wednesday.

"We haven't really convinced the markets yet, as we have seen the euro falling further. That means we must reduce deficits in all euro zone member states," Schaeuble told Deutschlandfunk radio.

Asked about remarks by Deutsche Bank Chief Executive Josef Ackermann that cast doubt on Greece's ability to repay its debt, Schaeuble said: "I'm not sure that was the wisest comment to make."

"Of course we expect every country to pay back its debts. So far Greece has also paid back every debt," he added.

Schaeuble said Germany would only introduce a financial transaction tax if it could be agreed globally and the chances of that happening were slim.

"If it can be agreed globally, then we can do it but whether there can be a global agreement ... we will see at the G20 summit of government leaders in June in Canada," he said. "The chances of there being such an agreement are very slim."

Instead, Germany is pushing for the introduction of a bank levy.

Asked whether his recent health troubles had led him to consider resigning, Schaeuble said: "No."

"I think I can undertake and bear this responsibility," he added.

Schaeuble, 67, has used a wheelchair since he was shot and nearly killed by a mentally ill man in 1990.

He has been in and out of hospital several times and recently missed international meetings in Madrid, Washington and Brussels due to healing complications following an operation earlier in the year. (Reporting by Paul Carrel; Editing by Tomasz Janowski)

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.