- Title: German Fin Min says monetary policy has exhausted options
- Date: 3rd November 2016
- Summary: FRANKFURT, GERMANY (NOVEMBER 3, 2016) (REUTERS) WIDE OF EVENT HOSTS SPEAKING CAMERAMAN VARIOUS OF GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE ARRIVING ON STAGE (SOUNDBITE) (German) GERMAN FINANCE MINISTER, WOLFGANG SCHAEUBLE, SAYING: "As long as we don't have a joint financial policy and that is something we don't have in Europe, the joint monetary policy will have to be accompanied by a regulated financial policy. This is not German stubbornness that is in the basis of a monetary union. And that is why the monetary union will not be able to be kept stable. Money policy alone cannot do it. It has largely exhausted the limits of its possibilities, with all risks and side effects - about that I won't say anything -, and cannot do it alone. The ECB is quite right. So we have to leave the control systems the way they are." SCHAEUBLE SPEAKING CAMERA (SOUNDBITE) (German) GERMAN FINANCE MINISTER, WOLFGANG SCHAEUBLE, SAYING: "A joint deposit guarantee in Europe does not solve the problems of the European banks. Every country and every bank has to clarify its balance sheets in such a way that they are sustainable in this globalization. And then the necessary mechanisms have to be installed in order to separate public debt and bank balances. We have to reduce the risk - currently we have too much in the European markets - before we can think about further steps to make it common, and this order must be respected." REPORTER READING PAMPHLET SCHAEUBLE ON STAGE WIDE OF EVENT ONGOING WITH SCHAEUBLE ON STAGE
- Embargoed: 18th November 2016 14:59
- Keywords: Schaeuble ECB monetary policy
- Location: FRANKFURT, GERMANY
- City: FRANKFURT, GERMANY
- Country: Germany
- Topics: Economic Events
- Reuters ID: LVA00156W511P
- Aspect Ratio: 16:9
- Story Text:Monetary policy has largely exhausted its possibilities, German Finance Minister Wolfgang Schaeuble said on Thursday (November 3), reiterating his long-held reservations about European Central Bank policy.
"As long as we don't have a joint financial policy and that is something we don't have in Europe, the joint monetary policy will have to be accompanied by a regulated financial policy. This is not German stubbornness that is in the basis of a monetary union," the 74-year-old politician said.
"Money policy alone cannot do it. It has largely exhausted the limits of its possibilities, with all risks and side effects - about that I won't say anything -, and cannot do it alone," he added.
Earlier on Thursday the European Central Bank said euro zone economy should continue to expand at a moderate and steady pace but added that the outlook was subject to downside risks, primarily from sluggish global growth and political uncertainty.
"The ECB is quite right," the German FinMin said.
"We have to reduce the risk - currently we have too much in the European markets - before we can think about further steps to make it common, and this order must be respected," he added.
The ECB's economic bulletin added that global trade remains weak but data suggest the downward trend may have bottomed out. - Copyright Holder: REUTERS
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