Schaeuble says "no" to throwing money at euro crisis

BERLIN Sun Jun 24, 2012 1:53pm EDT

Germany's Finance Minister Wolfgang Schaeuble talks to the media as he arrives to attend an eurozone finance ministers meeting in Luxembourg June 21, 2012. REUTERS/Francois Lenoir

Germany's Finance Minister Wolfgang Schaeuble talks to the media as he arrives to attend an eurozone finance ministers meeting in Luxembourg June 21, 2012.

Credit: Reuters/Francois Lenoir

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BERLIN (Reuters) - Throwing more money at the eurozone debt crisis will not solve the problem because the troubles have to be resolved at the cause, German Finance Minister Wolfgang Schaeuble said on Sunday.

Schaeuble also said in an interview with German TV network ZDF that Greece has not done enough to fulfill promises it made in exchange for bailout funds. Schaeuble also criticized the recent interventions by U.S. President Barack Obama.

"We have to fight the causes," Schaeuble said. "Anyone who believes that money alone or bailouts or any other solutions, or monetary policy at the ECB -- that will never resolve the problem. The causes have to be resolved."

Schaeuble added: "It's not going to help to take money to it. The decisive thing is to credibly fight the causes of the crisis. It's succeeding very well in Ireland and Portugal. It's not succeeding very well in Greece. But it must succeed in Greece. There's no other way to do this."

Schaeuble said Greece has clearly not done enough.

"Greece hasn't tried enough so far, that has to be said quite clearly," Schaeuble said. "That has to be said with respect for the domestic political difficulties. But no one on earth who has followed this issue would think that Greece has fulfilled what it has promised.

"Italy and Spain are different on this question," he added. "They're making great reform efforts."

Schaeuble dismissed advice from U.S. President Barack Obama, who has called on Europe to do more to fight the crisis.

"Mr. Obama should focus on reducing the American deficit," Schaeuble said. "It's higher than in the euro zone. You have to understand that people are always ready to give others advice quickly. Our argument is 'we're ready' (to do more). We want more Europe."

(Reporting By Erik Kirschbaum)

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Comments (22)
mulholland wrote:
The Euro will do just fine without France or any of the PIIGS. Transition out of the Euro by any one of them would be nasty, brutish, and short work for their own banks and prosperity. Greeks can live on one Euro per day. Africans do it. Asians do it. South Americans do it.

Jun 24, 2012 9:01am EDT  --  Report as abuse
Most everyone is concerned about Greece leaving the Euro Zone,
What would happen if Germany left the Euro Zone, Where would Europe get it’s bailout funds then?

Jun 24, 2012 9:08am EDT  --  Report as abuse
satori23 wrote:
As we dig-dig-dig in search for sound foundations, we’re most likely to find?

a.) Element zero?

b.) A really deep trap?

c.) Bunny?

***

“Anyone who has the chance to spend someone else’s money will do that,” – and where would that be? In ‘thieves guild’?

Most of the time generalizations are rude, unhealthy and annoying… politicians should be extra careful of what they’re saying… or we’ll end up with thoughts about self-proclaimed petty criminals in high places.

Jun 24, 2012 9:24am EDT  --  Report as abuse
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