- Title: Germany has interest in long-term success of Deutsche Bank - Gabriel
- Date: 7th October 2016
- Summary: BERLIN, GERMANY (OCTOBER 7, 2016) (REUTERS) VARIOUS GERMAN ECONOMY MINISTER SIGMAR GABRIEL ARRIVING FOR NEWS CONFERENCE CAMERA VARIOUS GABRIEL SEATED BEFORE START OF NEWS CONFERENCE JOURNALISTS (SOUNDBITE) (German) GERMAN ECONOMY MINISTER, SIGMAR GABRIEL, SAYING: "Therefore, I have pleaded against promising large tax cuts based on low interest rates as interest rates can rise again and then there is only the possibility to take on debts, raise taxes again or cause distribution conflicts. Therefore I advise against such promises." JOURNALISTS LISTENING (SOUNDBITE) (German) GERMAN ECONOMY MINISTER, SIGMAR GABRIEL, SAYING: "The German government has no risk assessment for the Deutsche Bank, but it is obvious that the Deutsche Bank faces enormous challenges based on its business models and also potential claims and verdicts in the United States. The announcement of the CEO of Deutsche Bank to change the bank's business models shows that the Deutsche Banks wants to react to this risk." JOURNALISTS LISTENING (SOUNDBITE) (German) GERMAN ECONOMY MINISTER, SIGMAR GABRIEL, SAYING: "I find the phrase "We are victims" remarkable for bank that declared this [speculation] a business model. But it's completely obvious that we have an interest in Deutsche Bank again becoming a stable financial institution that is successful nationally and internationally." VARIOUS JOURNALIST TYPING ON LAPTOP (SOUNDBITE) (German) GERMAN ECONOMY MINISTER, SIGMAR GABRIEL, SAYING: "My urgent advice is to do everything possible to invest the possibilities and the scopes that we have into the future of our country, so that we can remain economically successful, this is the premise for social security and to avoid distribution conflicts, also the premise - as we can see at the moment - to create the conditions for the inclusion of migrants." PAN ACROSS NEWS CONFERENCE UNDERWAY
- Embargoed: 22nd October 2016 14:30
- Keywords: Gabriel economy minister Germany Deutsche Bank bailout investment tax cuts
- Location: BERLIN, GERMANY
- City: BERLIN, GERMANY
- Country: Germany
- Topics: Budget/Taxation/Revenue,Government/Politics
- Reuters ID: LVA001530B6A5
- Aspect Ratio: 16:9
- Story Text: German Economy Minister Sigmar Gabriel said on Friday (October 7) that Deutsche Bank faces enormous challenges with potential fines in the United States, but moves by Deutsche's leadership to change the bank's business model showed the bank was reacting to the risks it faced.
Gabriel said while the German government did not have its own risk assessment for the bank it was clear that Germany was keen to see the bank succeed in the longer term.
"It's completely obvious that we have an interest in Deutsche Bank again becoming a stable financial institution that is successful nationally and internationally," Gabriel told a news conference.
He declined to comment on a possible government bailout for Deutsche Bank or a report that German listed companies are mulling an equity stake in Germany's largest lender.
During the news conference Gabriel also made the case for more public investments in schools, roads and digital infrastructure, warning Chancellor Angela Merkel's conservatives against promising tax cuts ahead of next year's election.
"My urgent advice is to do everything possible to invest the possibilities and the scopes that we have into the future of our country, so that we can remain economically successful, this is the premise for social security and to avoid distribution conflicts, also the premise - as we can see at the moment - to create the conditions for the inclusion of migrants," he said.
Gabriel warned against promising voters "gigantic tax cuts" and increased welfare handouts because Germany's currently solid public finances were mainly due to the low interest rates. "Interest rates can rise again and then there is only the possibility to take on debts, raise taxes again or cause distribution conflicts. Therefore I advise against such promises," he added. - Copyright Holder: REUTERS
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