Germany has warned that the stability and credibility of the single European currency will be under threat if European member states do not return to policies of fiscal discipline after the worst of the crisis is over.
The comments came from German Finance Minister Peer Steinbrueck in a speech to the Bundestag lower house of parliament. They were the strongest yet from a leading politician in Germany, which is worried about a surge in debt and deficit levels in the euro zone. Steinbrueck said the issue was of “decisive importance” for the bloc’s citizens and financial markets. Later, at a conference, the Finance Minister expressed doubts as to whether the various debt-financed stimulus packages around the world could stop the worst global downturn in 80 years.