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UPDATE 1-German FinMin: euro exposed to considerable dangers

Published 12/16/2009, 08:43 AM
Updated 12/16/2009, 08:45 AM

* FinMin says euro credibility must be upheld

* Says Germany an anchor of stability for euro

* Rules out VAT hike in current legislative period

(Adds quotes)

BERLIN, Dec 16 (Reuters) - There are "considerable dangers" to the euro's stability on international markets and the European single currency's credibility must be upheld, German Finance Minister Wolfgang Schaeuble said on Wednesday.

"We would have felt much bigger effects from this financial and economic crisis if we had not had the joint European currency," Schaeuble told a news conference to present the German government's draft 2010 budget.

"The stability of the euro and the credibility of the euro, the credibility of the euro on international markets must be upheld in the coming years. "There are considerable dangers. I don't need to list them individually," he added.

He added that Germany is an anchor for the stability of the euro, which has been under pressure this month due to factors including concern about Greece's yawning budget deficit.

Schaeuble reaffirmed that the government was not considering raising value added tax (VAT) in the legislative period to 2013. (Reporting by Dave Graham and Paul Carrel; Editing by Andy Bruce)

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