Germany Open to Coordination

Finance Minister suggests Germany will consider closer cooperation to solve eurozone's banking troubles.

Germany is open to closer European coordination to resolve the euro area’s banking troubles as the government backs moves to deepen political and economic union, Finance Minister Wolfgang Schaeuble said.

Schaeuble’s backing for efforts to tighten banking cooperation, made in an interview published in today’s Handelsblatt newspaper, follows comments by Chancellor Angela Merkel last night in which she said that systemic banks may need supervision at the European level.

Redemption Fund

Asked whether the German government might consider a redemption fund as proposed by its council of economic advisers, Schaeuble said that Barroso and European Central Bank chief Mario Draghi were charged by European leaders with “developing a concept for how we can achieve fiscal union as a next step after the fiscal pact” and the permanent rescue fund. “But that’s a medium-term project,” he said.

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