GERMANY-ECONOMY/SCHAEUBLE Germany's Schaeuble: solidarity needed to deal with refugee crisis

Record ID: 140095

  • Title: GERMANY-ECONOMY/SCHAEUBLE Germany's Schaeuble: solidarity needed to deal with refugee crisis
  • Date: 11th September 2015
  • Summary: BERLIN, GERMANY (SEPTEMBER 11, 2015) (REUTERS) AUDIENCE LISTENING FRIEDRICH MERZ, CHAIRMAN ATLANTIK-BRUECKE ASSOCIATION, TALKING TO GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE PHOTOGRAPHERS SCHAEUBLE COMING TO STAGE AUDIENCE (SOUNDBITE) (English) GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE SAYING: "But if we don't feel a sense of solidarity how can we solve our giant problems? We Europeans, especially we Germans, are very good at pointing the finger, including on the issue of refugees. Unfortunately we Germans are particularly good in this respect. In case of doubt Europeans tend to say that the Americans are to blame. But that doesn't help us make progress in terms of solving problems. Neither the United States nor Europe are able to make progress on the urgent questions of our time by themselves. We can only find sustainable solutions if we work together." VARIOUS OF AUDIENCE LISTENING TO SCHAEUBLE (SOUNDBITE) (English) GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE SAYING: "On the other hand it is Germany that reacted swiftly to the increasing flows of refugees at the current time. As Finance Minister I can say: We acted very quickly in addressing the consequences of the situation for Germany's federal budget. We swiftly allocated sufficient resources to tackling this task. In order to deal with the refugee situation we need more than ever an economically strong Europe which is capable of taking action. That is another reason why we are working to keep Europe together and to solve Europe's economical and institutional problems, especially in the euro zone." AUDIENCE LISTENING (SOUNDBITE) (English) GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE SAYING: "We have again and again discussions on this point. On the European and on the global level as well. If you look what's going on on the global level with increasing - public and private - an increasing liquidity in financial markets, it's by sure that we are moving to the next bubble. And I think we should learn lessons from the crisis we have overcome." AUDIENCE LISTENING (SOUNDBITE) (English) GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE SAYING: "Of course we all agree but we have to implement, we will continue to implement structural reforms. The goal of these reforms must be to improve economic conditions and especially to boost the innovation capacity of European economies, which is to be enforced. That is what structural reforms are for. Reforms are not just about making the labour market more flexible or ensuring the viability of social security systems. Rather our reforms aim in particular to improve education and training and to improve institutional frameworks. Streamlining administration, ensuring an efficient juridical system, reducing bureaucracy - I challenge - all of which are decisive for improving economic performance." AUDIENCE LISTENING AUDIENCE APPLAUDING
  • Embargoed: 26th September 2015 13:00
  • Keywords:
  • Location: Germany
  • Country: Germany
  • Topics: General
  • Reuters ID: LVAB993FVEMUWPAJA87JOEXF1IEA
  • Aspect Ratio: 16:9
  • Story Text: German Finance Minister Wolfgang Schaeuble said on Friday (September 11) that the country can handle the increasing numbers of refugees with available financial resources in the federal budget, but said that solidarity is needed to counter the growing migrant crisis.
    "But if we don't feel a sense of solidarity how can we solve our giant problems? We Europeans, especially we Germans, are very good at pointing the finger, including on the issue of refugees. Unfortunately we Germans are particularly good in this respect. In case of doubt Europeans tend to say that the Americans are to blame. But that doesn't help us make progress in terms of solving problems. Neither the United States nor Europe are able to make progress on the urgent questions of our time by themselves. We can only find sustainable solutions if we work together," said Schaeuble in speech at the Atlantik-Brücke Association, a transatlantic think-tank in Berlin.
    "On the other hand, it is Germany that reacted swiftly to the increasing flows of refugees at the current time. As Finance Minister I can say: We acted very quickly in addressing the consequences of the situation for Germany's federal budget. We swiftly allocated sufficient resources to tackling this task. In order to deal with the refugee situation we need more than ever an economically strong Europe which is capable of taking action. That is another reason why we are working to keep Europe together and to solve Europe's economical and institutional problems, especially in the euro zone."
    Schaeuble also warned that large amounts of liquidity can lead to price bubbles globally and lessons should be learned from the last financial crisis, making his comments after the European Central Bank cut its growth and inflation forecasts last week, warning of possible further trouble from China and paving the way for an expansion of its massive 1 trillion euro plus asset-buying programme.
    Monetary policy alone cannot solve the world's economic problems, German Finance Minister Wolfgang Schaeuble said on Friday, warning that too much liquidity can lead to price bubbles.
    Schaeuble avoided any mention of the European Central Bank, but he has repeatedly warned against an excessive reliance on central bank stimulus at a time when the ECB is paving the way to expand its already massive 1 trillion euro asset-buying plan.
    Last week, the ECB cut its growth and inflation forecasts and the bank's president, Mario Draghi, said explicitly the bond-buying programme may run beyond September 2016 and the bank may adjust its size and composition.
    "We should take on board the lessons of the last crisis," Schaeuble told the Atlantik-Bruecke association in Berlin, which aims to promote friendship between Germany and the United States.
    Europe's recovery, described by the bank as disappointing, is hardly gaining momentum. As a result, the ECB may yet roll out new measures, just six months after it began quantitative easing, considered a policy "bazooka" when it was introduced in January.
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