WSJ: Germany's Schäuble - Structural reforms remain critical

08 October 2013

Structural reform remains paramount and excessive liquidity has its limitations in helping promote economic growth, said Finance Minister Wolfgang Schäuble.

On a separate note, he said eurozone countries that have received bailouts have made progress, but they must continue to reduce their budget deficits. "Structural reforms that have been started to be implemented must be continued", he emphasised, adding that there is no other choice if economies want to be competitive.

Mr Schäuble also reiterated Germany's opposition to the European Commission's proposal for a eurozone Banking Union. Germany wants a network of national authorities to wind down failing eurozone banks while the Commission has proposed a centralised, single supervisor for banks. "The Commission proposal can't work like this", Mr Schäuble said. Germany insists that EU treaties have to be amended before it would be willing to support a centralised supervisor.

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