Spain doing “everything right” says German Finance Minister

German Finance Minister Wolfgang Schaeuble
German Finance Minister Wolfgang Schaeuble

German Finance Minister Wolfgang Schaeuble said Spain is doing “everything right” regarding it’s reforms and austerity measures but is suffering the effects of the situation in Greece, reported Handelsblatt.

The minister is also reported to have said that the euro zone needs to realise the medium-term project of fiscal union before any discussion of common euro zone bonds.

“The Spaniards are doing everything right and nonetheless they are coming under market pressure,” Schaeuble said. “We need to manage this …through close and trusting coordination.”

When asked about the possibility of additional burdens being placed on German taxpayers to increase Europe’s bailout funds, the minister said his government would not raise taxes.

He said Europe needed to implement what had already been agreed and fight the problems as and when they arose without setting false incentives.

“The government has always said that before we can talk about common debt management, we need a proper fiscal union.”

Schaeuble also said that euro zone policymakers including the head of the ECB and the European Commission president had been commissioned to develop a blueprint plan for fiscal union. However that, he said, was “a medium-term project.”