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14 July 2013

Schäuble: Everything is contingent upon budgetary approval


In an interview with Stuttgarter Nachrichten, German finance minister Wolfgang Schäuble spoke about Germany's role in Europe and the continuation of sound fiscal policy.

Translated from the German

Mr Schäuble, in a recent brief to the members of the CDU/CSU and FDP you ended with the phrase: "We can be proud of our achievements". That conclusion was not foreseeable three or four years ago.

That's true. We have made tremendous progress over the past four years. We have kept public spending on the level of 2010 and have put lots in place in terms of financial regulation. The markets have regained confidence in the euro.

So in case of an election victory, a CDU-led government might grant wishes left, right and centre?

The election manifesto clearly states that we intend to continue our sound financial policies. The specific provisions in our election programme are carefully calculated and backed up. However, everything depends on the budget - sound finances are our main priority. 

As finance minister, can you promise that there will be no tax increases in the next four years?

Our estimated tax income will allow us to fund public finances if we stick to our sound fiscal policies. We do not need to increase the overall tax burden, nor corporate taxes. In comparison to the Länder and municipalities, the federal government is in by far the worst financial position - and we are still confident that we can eliminate our structural deficit next year and manage without making new debt in 2015. Our country is competitive. Whoever raises the question of tax increases, as proposed by the SPD/Greens, is destroying confidence in the investment climate.

Where do you see problems with European integration?

We need more Europe. We want to make the banking supervision more efficient, but the current European Commission proposals for banking resolutions interpret European law in such a way that the Federal Constitutional Court could object to it. And that I do not want to risk.

Does Germany need to display stronger leadership in Europe?

The accusation that we are always holding Europe back is an unfair one. But if we act, we must do so within the agreed laws and regulations, which is definitely possible. We lead Europe by example, abiding by the contracts. And this we cannot do alone, but only together with our European partners.

Full interview (in German)

Full interview (in English)



© Bundesfinanzministerium


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