Euro conflict continues to brew
(17 March 2010 – Europe) Germany and France are in dispute over the debt crisis in the eurozone, as Wolfgang Schauble, finance minister of Germany, demands that countries who fail to clean up their finances should face being thrown out of the European Union.
The Australian newspaper reported that the German finance minister said that the Stability and Growth Pact that governed the eurozone was not tough enough.
The eurozone needs stricter rules. That means, in an extreme emergency, having the possibility of removing, from the euro area, a country that does not get its finances in order, Mr Schauble said.
The finance minister for France, Christine Lagarde, criticised in an interview Germany’s large trade surplus and dismissed the proposed European Monetary Fund and its power to kick out non-complying nations.
Ms Lagarde said that Berlin should increase domestic demand to stimulate economic growth in the eurozone, adding that Germany’s trade surplus with other EU states was not sustainable.
Ms Lagarde proposed ‘soft’ rules to improve discipline in the eurozone instead of the European Monetary Fund, adding that the EMF project would take over five years to complete, The Australian newspaper reported.
The eurozone needs stricter rules. That means, in an extreme emergency, having the possibility of removing, from the euro area, a country that does not get its finances in order, Mr Schauble said.
The finance minister for France, Christine Lagarde, criticised in an interview Germany’s large trade surplus and dismissed the proposed European Monetary Fund and its power to kick out non-complying nations.
Ms Lagarde said that Berlin should increase domestic demand to stimulate economic growth in the eurozone, adding that Germany’s trade surplus with other EU states was not sustainable.
Ms Lagarde proposed ‘soft’ rules to improve discipline in the eurozone instead of the European Monetary Fund, adding that the EMF project would take over five years to complete, The Australian newspaper reported.
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