German minister says eurozone will need common policies

25th August 2011, Comments 0 comments

German Finance Minister Wolfgang Schaeuble said Thursday that countries that share the euro will need a common financial policy at some point.

"One day we will have to adopt a common financial policy in Europe, after having a common monetary policy," Schaeuble told a conference in Frankfurt.

He spoke against a background of how to resolve the eurozone's chronic sovereign debt crisis, which is proving difficult to do because each of its 17 members has retained control over their respective financial and fiscal policies.

The German minister also took a swipe at former US Federal Reserve Chairman Alan Greenspan, who said this week that the single European currency was breaking down.

"If I were American I would ask myself if the dollar will still exist in 10 years," he quipped.

It was "wrong" to believe that the euro will disappear, Schaeuble said.

Greenspan told a Washington forum on Tuesday that "the euro is breaking down" and that uncertainty stemming from the process was holding back the US economy.

Greenspan said a key problem was that European banks are falling into trouble because of their huge holdings of debt of countries close to default.

© 2011 AFP

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