German Finance Minister Wolfgang Schaeuble said that turmoil in the financial markets caused by Europe’s debt crisis may last another two years, as Group of Eight leaders prepared to discuss Greece and its impact on the global economy.
More than 2½ years after Greece revealed its bloated budget deficit, Europe has “known a lot of crisis,” Schaeuble said in a recorded interview broadcast today on France’s Europe 1 radio. “It’s practically normal.” Even so, “in 12 to 24 months we’ll see a calming of financial markets,” he said.
Geithner, in a speech in Baltimore, highlighted the debate in Europe over encouraging growth, as demanded by Hollande, and the need to consolidate budgets and reduce debt insisted upon by Merkel. Merkel and Hollande said two days ago at their first meeting that they would consider measures to spur growth in Greece as long as voters there committed to the austerity demanded to stay in the euro.