Germany's Schaeuble labels euro debt crisis 'serious'

21st October 2011, Comments 0 comments

German Finance Minister Wolfgang Schaeuble said Friday that Europe faced a "serious" crisis as divided European governments attempted to resolve a multi-pronged debt crisis.

"The situation is serious," Schaeuble said on arrival for crunch talks with fellow eurozone finance ministers in Brussels.

"We have a great responsability, we all know it," he said, "to Europe, to the eurozone but naturally also to the world economy."

The minister said the eurozone debt crisis was "spilling into the real economy" and insisted that "we have to come up with a European solution before the G20 summit in Cannes."

Schaeuble reiterated the German position that the EU's bailout fund should not be allowed to borrow from the European Central Bank, as France would like.

"The EU treaties prevent member states being financed by the central bank," he told reporters.

He played down Franco-German rifts that have threatened to derail a solution to the eurozone debt crisis, stressing that the power couple in Europe "is working very closely together."

© 2011 AFP

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