Bloomberg News

Germany’s Steinbrueck Tells Passauer Shared Debt Needs Oversight

June 27, 2012

European debt sharing isn’t possible without countries accepting external budget oversight, Peer Steinbrueck, Germany’s former Finance Minister, told Passauer Neue Presse.

“First I want to see that Germany and the Mediterranean countries say, ‘Great, the rule will be: if we can’t keep our own budgets in order, our budget rights will move to a European institution,’” the newspaper cited Steinbrueck as saying in an e-mailed preview of an interview to be published today. “Otherwise it’s not acceptable for Germany to accept liability for others. That would be like giving out a credit card: others do the shopping, and Germany pays.”

Steinbrueck ruled out a banking union with common deposit insurance as suggested by European Union President Herman Van Rompuy, the newspaper said. Strengthening national deposit insurance together with broader European oversight and a European bank liquidation law would be possible, the newspaper cited the Social Democrat lawmaker as saying.

To contact the reporter on this story: Naomi Kresge in Berlin at

To contact the editor responsible for this story: Phil Serafino at

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