Germany hits back at austerity critics

FE Team | Published: September 10, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

BERLIN, Sept 9 (AFP):  German Finance Minister Wolfgang Schaeuble hit back on Tuesday at critics of austerity in Europe, saying economic growth cannot be boosted by easing the bloc's budget rules or cutting interest rates.
"One can't simply buy jobs and growth with public money," Schaeuble told the lower house of German parliament, or Bundestag, in a budget debate.
His remarks may be seen as a reply to critics who blame Germany for imposing austerity on countries with big budget deficits. Such criticism has been strong in France recently.
Countries must get their finances in order by pressing ahead with structural reform, even if such measures are unpopular, Schaeuble continued.
Believing that simply easing the EU's strict budget rules was a way to stimulate growth, was "a mistake", he said.
"We're not going to go down that path," Schaeuble told the lower house of German parliament, or Bundestag, in a preliminary hearing on the government's 2015 budget.
Neither could politicians shift the responsibility to the European Central Bank, the minister argued.
The European Central Bank "is doing what it can, but as you can see it is not in a position to force growth," he said.
Last week, the ECB cut its key interest rates to new historic lows in a surprise move, and unveiled plans for asset purchases, in a bid to prevent the single currency region from slipping into deflation.