German finance minister calls for eurozone budget laws

17 May 2010

Wolfgang Schauble, the finance minister of Germany, has called on other countries in the eurozone to follow his country's example and introduce tough budget laws.

Last year, Germany passed legislation stating that the federal government's budget deficit is not allowed to rise higher than 0.35 per cent in a year, with this target due to be introduced from 2016.

After 2020, no deficit will be allowed by German states at all.

Mr Schauble has suggested other eurozone member countries could help stabilize the euro by bringing in similar measures, reports the Financial Times.

"Something like that would be a good idea for other countries to have – although it might take on different shapes and forms for each member of the eurozone," he stated.

Last week, it was agreed that Germany will pay around €123 billion ($151 billion) towards the €750 billion bailout package agreed for the eurozone earlier this month.

By Claire Archer

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