THE future of the euro is now at stake
THE future of the euro is now at stake, German Finance Minister Wolfgang Schaeuble warned yesterday as European officials prepared a bailout package for Ireland and bank shares plunged.
Mr Schaeuble spoke as Spain became the latest country to come under pressure from the bond markets.
"The uncertainty puts our common currency at stake," he said as pressure mounted on the Government here to pass a Budget to ease the threat to other weak eurozone countries.
"If we can't defend this common currency as a sustainably stable currency the consequences would be incalculable," Mr Schaeuble said.
"It's extraordinarily important to show that it's possible in Germany to do what we've promoted so often abroad," he said, referring to Berlin's plans to cut more than €80bn from its budget over the next four years.
"We have every reason to continue decisively on this path," he added.
German Chancellor Angela Merkel echoed his sentiments warning that Ireland's economic woes had put the euro in an "exceptionally serious" situation. "I don't want to paint a dramatic picture, but I just want to say that a year ago we couldn't imagine the debate we had in the spring and the measures we had to take over Greece.
"We are facing an exceptionally serious situation as far as the euro's situation is concerned," Ms Merkel added.
She reiterated that "tough conditions" would be imposed on any nation that sought a bailout. "I won't let up on this because otherwise that primacy of politics over finance can't be enforced," Ms Merkel said. "It remains our task to keep calling for tough measures and tough conditions, but also to express clear support for the euro."
Mr Schaeuble spoke as Spain became the latest country to come under pressure from the bond markets.
"The uncertainty puts our common currency at stake," he said as pressure mounted on the Government here to pass a Budget to ease the threat to other weak eurozone countries.
"If we can't defend this common currency as a sustainably stable currency the consequences would be incalculable," Mr Schaeuble said.
"It's extraordinarily important to show that it's possible in Germany to do what we've promoted so often abroad," he said, referring to Berlin's plans to cut more than €80bn from its budget over the next four years.
"We have every reason to continue decisively on this path," he added.
German Chancellor Angela Merkel echoed his sentiments warning that Ireland's economic woes had put the euro in an "exceptionally serious" situation. "I don't want to paint a dramatic picture, but I just want to say that a year ago we couldn't imagine the debate we had in the spring and the measures we had to take over Greece.
"We are facing an exceptionally serious situation as far as the euro's situation is concerned," Ms Merkel added.
She reiterated that "tough conditions" would be imposed on any nation that sought a bailout. "I won't let up on this because otherwise that primacy of politics over finance can't be enforced," Ms Merkel said. "It remains our task to keep calling for tough measures and tough conditions, but also to express clear support for the euro."
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