BANGKOK: Slashing government debt is the only way to put Europe back on a path of sustainable economic growth, German Finance Minister Wolfgang Schaeuble said on Monday.
"If we want to achieve sustainable growth, we have to reduce the sovereign debt in nearly all advanced economies," Schaeuble said in a speech at the Thai central bank.
"There is no choice (but) to reduce in the medium term the over-indebtedness," he added.
"The most important thing for growth is confidence -- confidence by investors and confidence by consumers... Long term stability is the most efficient precondition for regaining confidence," Schaeuble said.
His comments follow signs of discord within Europe about whether austerity or pro-growth measures are the answer to resolving the region's debt crisis.
Last week International Monetary Fund Christine Lagarde said she was happy for Greece -- struggling under the weight of cuts demanded by international creditors -- to have two more years to meet its deficit-reduction targets.
Schaeuble for his part has insisted there is "no alternative" to cutting bloated national balance sheets, which Athens and other troubled eurozone nations have agreed to in exchange for multi-billion euro bailouts.
Schaeuble was in Bangkok for talks between senior finance officials from Asia and Europe in the face of growing nervousness about the worldwide fallout of the eurozone debt crisis.
indiatimes.com
"If we want to achieve sustainable growth, we have to reduce the sovereign debt in nearly all advanced economies," Schaeuble said in a speech at the Thai central bank.
"There is no choice (but) to reduce in the medium term the over-indebtedness," he added.
"The most important thing for growth is confidence -- confidence by investors and confidence by consumers... Long term stability is the most efficient precondition for regaining confidence," Schaeuble said.
His comments follow signs of discord within Europe about whether austerity or pro-growth measures are the answer to resolving the region's debt crisis.
Last week International Monetary Fund Christine Lagarde said she was happy for Greece -- struggling under the weight of cuts demanded by international creditors -- to have two more years to meet its deficit-reduction targets.
Schaeuble for his part has insisted there is "no alternative" to cutting bloated national balance sheets, which Athens and other troubled eurozone nations have agreed to in exchange for multi-billion euro bailouts.
Schaeuble was in Bangkok for talks between senior finance officials from Asia and Europe in the face of growing nervousness about the worldwide fallout of the eurozone debt crisis.
indiatimes.com
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