Schäuble: Yes to development, no to debt

German Finance Minister Wolfgang Schäuble said today, Thursday, at the German radio that no one is opposed to development in Europe, but efforts to fiscal restoration should continue, in response to comments made this week by the European Commission for the mitigation of austerity policies in Europe.

"Nobody is against development. I say it again and again that the biggest problem in Europe is youth unemployment," Schäuble said, adding that this does not mean the debt levels have to increase.
 
"We need stability and sustainable growth," he replied to a question on the comments of European Commission president Jose Manuel Barroso that austerity has reached its limits in terms of popular support.

The German Finance Minister said that European governments, including France, must continue with reforms in order to tackle their deficits and that current conditions pave the way for the flexibility needed to adapt to economic changes.
 
"France must follow the path of structural reforms," he said, referring to the high labor costs and the costs of public administration. "The tackling must come step by step so that it can be credible," he said, adding that only then can one talk about flexibility.