German foreign minister hits out at US over debt crisis

BERLIN: Germany's foreign minister Sunday lashed out at the United States over criticism the eurozone is not doing enoug

Guido Westerwelle told the Bild am Sonntag weekly: "Let us not forget that the cause of the current crisis is too much debt in Europe, but also too much debt worldwide.

"Therefore, I cannot understand some of the critical comments from our American friends regarding our policy of reducing debt."

Westerwelle's remarks were the latest in a series of barbs between Berlin and Washington over Europe's perceived dithering over the crisis.

Last month, US President Barack Obama urged Europe to act faster to find a solution, saying the debt and banking crisis was "scaring the world," prompting a furious and un-diplomatic response from Germany's finance minister.

"It's always much easier to give advice to others than to decide for yourself. I am well prepared to give advice to the US government," said Wolfgang Schaeuble.

"Even if Obama is thinking the opposite, I don't think the problems of Europe are the reason for the problems of the US," he said.

And on Friday, German Chancellor Angela Merkel took a clear swipe at the US, saying that she could not accept that those urging faster action on the debt crisis were also blocking a proposed tax on financial market transactions.

However, Obama and Merkel discussed the crisis on Friday and top American finance officials appeared to be happier with Europe's progress towards a solution at a meeting of the G20 in Paris a day later.

US Treasury Secretary Tim Geithner said finance ministers and central bankers had "heard encouraging things from our European colleagues in Paris about a new comprehensive plan to deal with the crisis on the continent."

Westerwelle hinted at a three-point plan: "Europe must become a stability union worthy of the name; we need hard punishments for nations with permanently weak budgetary situations; the competitiveness of EU states must be raised."

He reiterated Berlin's opposition to Eurobonds -- issuing eurozone-wide debt -- that several economists suggest would be an effective solution to the crisis.

"We shouldn't make it easier to rack up debts. Quite the opposite: solid budgets and reducing debts are the order of the day," Westerwelle said.

Copyright AFP (Agence France-Presse), 2011

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