December 13, 2010
Germany's ruling center-right coalition argued about whether further European integration is the solution to euro-zone problems after the country's finance minister said Friday that the country needs to be prepared to move into a deeper fiscal union.
Wolfgang Schäuble said in an interview with The Wall Street Journal that Germany would first try to work with the reform of the present structure, but if that doesn't work, the country needs to think about moving toward further integration in fiscal policy for the 16-nation euro zone.
Many Germans, including leading members of the government, oppose further economic integration, fearing that Germany would be forced to pay the debts of other countries. Last week Luxembourg's premier called Germany "un-European" for dismissing a proposal for a common European bond, which would allow financially troubled countries to borrow at lower rates because of the backing of their stronger partners, including Germany.
"Euro bonds are just a cover name for other euro countries' unabashed attempt to pick the pockets of German taxpayers," said Alexander Dobrindt, the Christian Social Union's secretary general in an interview with the weekly Der Spiegel.
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