German Finance Minister Peer Steinbrueck has come under fire for his handling of the financial crisis after a series of public statements critics say have caused confusion about Berlin's response to the turmoil. Steinbrueck, the 61-year old deputy leader of the centre-left Social Democrats (SPD), has earned a reputation for straight-talking since taking over the finance portfolio in Chancellor Angela Merkel's coalition in 2005.
He made waves last month when he blamed the crisis on a US lust for profits and predicted an end to the era of American financial dominance in a fiery speech in the German parliament. But his shoot-from-the-hip style has led to rhetorical stumbles over the past weeks that have disconcerted investors and even aggravated German bank troubles, according to bankers.
Germany's leading financial dailies all criticised Steinbrueck's crisis management in prominent articles on Tuesday, with Handelsblatt's chief editor penning a front-page editorial calling his public appearances "psychological poison". "Steinbrueck needs to watch out that his rhetorical crosses don't result in own-goals," Bernd Ziesemer wrote.
Finance Ministry spokesman Torsten Albig, who has been at pains to explain the meaning of the minister's statements at regular government news conferences over the past week, said there was "no substance" to the criticism.
But politicians, bankers and corporate executives told Reuters on Tuesday they believed Steinbrueck had made serious communication errors since the crisis reached new heights in September, rattling German financial institutions. A former premier of Germany's most populous state, North Rhine-Westphalia, Steinbrueck has won plaudits for overseeing a consolidation of the German budget. Although widely seen as competent, he has never been known for his verbal discipline. Last week, after announcing a 35 billion euro rescue of Hypo Real Estate.
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