Germany warns against more debt as G20 set to begin in Shanghai
Germany’s Finance Minister Wolfgang Schaeuble, on Friday, warned against further debt-financed stimulus to spur global economic growth, as a G20 meeting of leading economies was set to begin in Shanghai.
“The debt-financed growth model has reached its limit,” Schaeuble told an event hosted by the IIF global finance industry association.
More debt would cause further problems, and further uncertainty could bring on the next crisis,’’he said.
Schaeuble appealed to his counterparts to ride out recent economic turbulence.
“We have to stick to that which we’ve agreed to and finally implement it,” he said.
Volatility in major financial markets since the start of the year has troubled investors worldwide, with bank shares in particular suffering steep declines before recovering in recent weeks.
Finance ministers and central bank governors from G20 countries, will be seeking to support the fragile global economy at their Shanghai meeting, China’s official Xinhua news agency reported.
“This year, the G20 group is focused on adopting structural reforms to help economic growth in member countries,” the Finance Ministry was quoted as saying. (dpa/NAN)