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German FinMin warns of new financial crisis risks

Fri Nov 20, 2009 7:10am EST

FRANKFURT, Nov 20 (Reuters) - Leaving economic support measures in place too long would risk laying the foundations for a new financial market crisis, German Finance Minister Wolfgang Schaeuble said on Friday.

However, Schaeuble added that it was too soon to withdraw stabilisation measures and that he could not yet sound the all-clear for Germany, Europe's largest economy.

"We are still a good way off a self-sustaining recovery," he said according to the text of a speech for delivery at the European Banking Congress in Frankfurt.

Turning to economic support measures used to combat the crisis, he said that even though these had been unavoidable and successful they were not sustainable in the long-run.

"Otherwise they would threaten the sustainability of public finances and monetary stability," he added. "And they would raise the risk of paving the way for the next bubble creation, and for another financial market crisis." (Writing by Paul Carrel)



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