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The euro will not fail, Schäuble says
Photo: DPA

The euro will not fail, Schäuble says

Published: 11 Dec 2010 15:52 GMT+01:00
Updated: 11 Dec 2010 15:52 GMT+01:00

German Finance Minister Wolfgang Schäuble on Saturday warned speculators on the financial markets not to bet against the euro, as European leaders prepared for a summit next week to shore up the embattled currency.

"Whoever bets his money against the euro will not succeed," Schäuble told the mass circulation weekly Bild am Sonntag, in an interview to appear in Sunday's edition.

"The euro will not fail," added the minister, amid speculation that debt crises in some countries of the 16-nation zone could bring down the currency.

"All those in charge in Europe are agreed: The euro brings us all advantages. And therefore we will successfully defend it," Schäuble added.

The finance minister also set out the stakes if the crises in Ireland and Greece were to spread to Portugal, Spain and others, forcing one of the countries from the eurozone.

"Even if one of the small countries were to leave, the consequences would be incalculable," Schäuble said.

"And when I look back at the effects of the Lehman Brothers crash, I say, 'Let's not make the same mistake twice,'" he concluded, referring to the collapse of the large US investment bank that sparked the financial crisis.

EU leaders will meet in Brussels on Thursday and Friday to discuss setting up a permanent crisis fund for the euro area after its current fund expires in 2013.

The EU decided on May 9 to create a €750-billion ($992-billion) joint fund with the International Monetary Fund, a mixture of loans and guarantees from eurozone and EU partners for troubled states.

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Your comments about this article

18:21 December 11, 2010 by HANNIBAL-BARCA
FIAT currencies always end. The average life span of a fiat currency is less than that of a human. The British Pound Sterling and the United States Dollar are two rare exceptions, however they both fallen from grace. The former is a shadow of it's previous self and the latter has lost over 100% of it"s purchasing power in the last 90 years against various relevant metrics.

Schauble boast is pure hubris and political pontificating. He wouldn't know a speculator from a politician if he looked in the mirror. Based on the debts already incurred within the Euro, it's debasement is assured.
20:40 December 11, 2010 by raandy
It does not bring every country advantages,especially those that would have benefited from a currency devaluation.
21:21 December 11, 2010 by Logic Guy
Well, I wouldn't be so quick to bet against Schable. He's a rather bright man. If one or two Euro members were to leave, the Euro would could still survive. Actually it would become stronger, as troubled and high debt burdened nations would allow the currency to stablize.
10:04 December 12, 2010 by storymann
No doubt Schäuble is an intelligent person ,but he only represents Germany,who's along with france's economies are the driving force of the eurozone economies.

There is a vast deviation between countries ,when it comes to GDP,,wages ,cost of living ,and inflation. The ECB has made the Euro,as a one size fits all,which is not working.The guidelines that work for the more robust economies is not working for the lesser ones,This is a problem now and may become a much bigger one in the years ahead,if members opt out due to this pressure,then the concept of a single currency across the euro zone has failed. Germany can bail out these countries for the short term,along with help,but a continuation in disparity between countries will eventually bring it down.

As long as the USA and China manipulate their currencies causing the Euro to be over valued and there by slow exports out of the euro zone and increase theirs ,only makes matters worse. The Euro debt crisis may intern bring the value of the currency down(despite the efforts of china and the usa) and help increase exports out of the euro zone ,there by increasing individual states GDP and reducing the debt crisis. Time will tell.
01:19 December 13, 2010 by wenddiver
How funny, if there wasn't serious doubt that it will fail he wouldn't be addressing it in the press. What a politician!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
12:32 December 13, 2010 by delvek
you are 100% correct wenddiver.

There is no doubt the Euro IS on uncertain terms. I am not saying it will fail or not, but it is going through a defining momment in its history. Generally, the Euro has not been a good thing for European citizens. It causes most average people to lose buying power and decreases their individual standard of living. I was in Croatia couple of months ago and just about everyone I spoke to is dreading the potential Euro price spike that would follow.

Well, something has to be the straw that broke the camels back, if its not immigration then make it currency, in the end it all goes into the same blender and war cocktail eventually is served.
16:28 December 13, 2010 by slawek
For those not accustomed to German politics. There is a 30 years old political saying "The pension is safe" - ger.: Die Rente ist sicher - which caused a lot of sarcasm over the years. It seems like Schauble wants to coin a quote of his own, which is sort of very funny, because it makes you think instantly of failures in the pension system.
16:59 December 13, 2010 by derExDeutsche
Was this man hired because he has the most Phallic finger in Germany? Or maybe was it the way he waves it next to his mouth in every photo op, that got him the job?

Either way, he's apparently the messenger we're not supposed to kill.

The Euro has not failed us, We failed the Euro. Thanks. Rechnung, bitte.
15:02 December 14, 2010 by SockRayBlue
Wolfie, why did you decide to forego the German Mark for a combined currency in the form of a Euro? It looks to be the beginning of the end for Europe. I think it best for Europen country's to regain their sovereignty.
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