The euro region’s sovereign debt crisis “can be history soon” if Greece’s debt is reduced to a sustainable level and other members of the bloc take “concrete” action to convince markets that they’ll remain solvent, German Finance Minister Wolfgang Schaeuble told Hamburger Abendblatt.
The euro will remain stable and an important global reserve currency, Schaeuble was quoted as saying by the newspaper, noting that other large economies in the world face bigger debt problems than the euro region.
Before the meeting of leaders from the biggest economies from the Group of 20 in Cannes, France, Schaeuble said no financial market, participant or product should remain unregulated. Debt reduction goals agreed at an earlier summit in Toronto must be met, with countries including Germany, the U.K., Canada and possibly Italy likely to reach their targets.
Germany is considering talking to “our friends on the other side of the Atlantic” about the introduction of a financial transaction tax in Europe and North America if an agreement in the G-20 as a whole can’t be reached, Schaeuble said.
Schaeuble said he’d reject a reduction of Germany’s solidarity surcharge tax on income and profits if the opposition-controlled upper house of parliament blocks planned income tax cuts for small and medium-income earners, the newspaper said.