Deficit-Cut Pressure Must be Stepped Up in 2011 to Save Euro, Kauder Says

Germany must step up pressure on fellow European Union countries to reduce their budget deficits to protect the euro, the parliamentary leader of Chancellor Angela Merkel’s Christian Democratic bloc said.

“All governments in Europe have to rethink their approach to keeping the euro stable,” lower-house CDU/CSU leader Volker Kauder said in an interview posted today on the website of the German Bundestag. “It should have become clear to all states that only solid budgetary and economic policy leads to success. We have to raise the pressure in this direction.”

The situation in financial markets will continue to be one of the “dominant themes” facing the German government in 2011, Kauder said. One state’s debts can’t simply be “laid at the feet of others” to deal with, he said.

“One thing is clear: the euro is our currency, and we’re standing by it,” Kauder said. “We have to protect our currency and at the same time take care that it becomes more robust. The key to the latter lies above all with individual euro states.”

To contact the editor responsible for this story: Alan Crawford at acrawford6@bloomberg.net

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