German Finance Minister Wolfgang Schaeuble said introducing euro bonds would prompt countries to spend more, L’Hebdo reported, citing an interview.
“Anyone who has the possibility to spend money at the expense of others will not hesitate to do so,” the Swiss magazine cited him as saying in an e-mailed pre-release of an article in tomorrow’s edition. “You would, I would. The markets know that. And that is why you would not be convinced either by euro bonds.”
Spain’s banking woes “show once again that Europe would be better off under a banking union,” Schaeuble told the magazine.
Schaeuble said that he “doesn’t believe in the collapse of the euro,” according to L’Hebdo. Asked whether he was hoping that the euro-region turmoil would eliminate the area’s “congenital handicaps,” he said that “it’s not quite as serious. I’m neither in despair nor resigned.”