August 20, 2011 / 2:23 PM / 7 years ago

Germany: can't have euro bonds without joint policy

BERLIN (Reuters) - Europe cannot have uniform interest rates on its debt unless its fiscal policy is also made collectively, German Finance Minister Wolfgang Schaeuble said on Saturday.

“As long as we don’t collectivize financial policy we also cannot have a uniform interest rate level. The different rate levels are the incentive to run a solid economy or the punishment if you are not running it properly,” Schaeuble said, speaking at his ministry’s open day.

“So the question is, how do we manage to promote political integration step by step. We cannot collectivize interest rates,” Schaeuble said, referring to proposals that the euro currency bloc should issue common euro bonds.

Reporting by Matthias Sobolewski, writing by Annika Breidthardt

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