Monday, August 15, 2011

German Finance Minister Wolfgang Schäuble: 'There Is No Unlimited Support'

August 15, 2011

In a SPIEGEL interview, German Finance Minister Wolfgang Schäuble talked about his opposition to euro bonds, the limits to European solidarity and the need for governments to reduce their debt burdens.

SPIEGEL: Mr. Schäuble, have you bought any gold yet?

Schäuble: My private financial situation is such that I don't need to worry about my investments. I don't have much to invest.

SPIEGEL: Many people are worried about their savings. They're losing their trust in their currencies and in their governments' crisis management, in the US as well as in Europe. The price of gold is rising as a result. Can you understand this mistrust?

Schäuble: I can understand that the abundance of less than positive news scares people. But there's currently no inflationary trend, and the euro is stable, both internally and externally. What we do have are disruptions on the financial markets, and we need to make sure that these don't have a detrimental effect on the real economy. So far, that hasn't been the case. Despite all the excitement, we're able to tell people: Our currency is secure.


No comments: