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German finance minister says budget discipline key to gain trust in euro
Wolfgang Schaeuble says the Euro needs more work to reverse it crisis of confidence, as the ratified EFSF impacted on the euro area’s confidence.
German finance minister Wolfgang Schaeuble
The German Finance Minister, Wolfgang Schaeuble, has called for quick changes to tighten budget discipline, which he said is the key to clam the markets.
The ratification of the European Financial Stability Fund, which increased the rate of interest on debts, has highlighted the crisis of confidence in the euro area, Schaeuble said. "The decisive answer remains budget disciplined enforced by changes in the treaty of the European Union," he said.
The EU treaty change would give veto power over member-states budgets to the EU Commission, which would mean the European Commission could object to the budgets proposed by its member states.
"We can do that quickly and this will send an important signal to markets that the euro is and remains a stable currency," he said.
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There was an expectation during its creation in 1999,that the southern members would behave just as those countries in the north example,the Italians would behave just like the Germans.The exact opposite has happened.
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Bye-bye our last crumb of independence. It lasted from 1964 to 2004.
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Bye-bye our last crumb of independence. It lasted from 1964 to 2004.
