Wolfgang Schaeuble is pushing for stability in the European Union (EU). The German Finance Minister has stated that the recent British referendum should not be allowed to weaken the union. He urged leaders to do everything possible to maintain stability within the union, especially through implementing policies that support it.
Economic stability is one of the main purposes of the European Union. That is backed through trade among European nations, all of which are to benefit equally from the free movement of goods and services through the geographic region. The average annual rate of growth in the region has been 1.70%. The highest rate of growth for any quarter has been 4.60%. Eurozone GDP growth has been less than 1% throughout 2016. ]
Factors such as problems in the French economy have affected the overall growth rate within the union, causing members like Britain to consider pulling out. France is one of the largest economies in the Eurozone, so any decline in its growth rate will significantly affect the overall growth of the region. Joblessness in the zone currently hovers at around 10%.
Although the United Kingdom has voted to exit the union, the process is not simple. It could take as many as five years for Britain to completely withdraw from the zone. For his own part, Mr.Schaeuble has encouraged restraint in spending in Germany. He has developed a budget for Germany which should impart stability in times which often seem unpredictable. With less of a feeling of uncertainty, the Finance Minister seems to be upbeat about the future of Europe’s economy. He is confident that the European economy has never seen better times.
Mr.Schaeuble’s position is based on data which shows unemployment at the lowest it has been in 25 years. He states that wages have also been rising throughout the years, indicating that more people are working and those people are earning more than they have in the past. That means there should, in theory, be more money available for spending on consumer products.
Finance Minister Schaeuble has urged global regulators to avoid punitive measures for Europe and other regions as countries aim to meet new bank capital requirements. He emphasised the common methods of operation of banks in Europe. Being united tends to give banks in the Eurozone more authority to speak as one. This decreases the possibility that an individual bank or single nation may see a sizable increase in capital requirements.
With the fluctuations in inflation facing the Eurozone, a number of member states do not think now is the time to be focused on theoretical plans that cannot be supported by changes to existing treaties. The United Kingdom has already made a decision that directly impacts their ability to access employment in other parts of Europe. They did this hoping to have the zone change but are finding that there is a wide disparity between what they want and what the bloc is prepared to give.
Eurozone members aim to find solutions for urgent problems, including the deflationary trap facing the bloc. Together, they aim to find ways of improving the Juncker Fund. This was established in order to remove obstacles to investment. Since 2011, Mr. Schaeuble has emphasised the role that policymakers play in helping to keep the region’s currency stable.
When the Euro faced uncertain times in 2011, he was the one whose pronouncements helped to focus the efforts of leaders across the zone. He asserted that politicians would keep the Euro from devaluing and policymakers would keep the zone unified. Germany is the largest economy in Europe and has always played an important role in guiding policy which manages debt and keeps inflation headed in the right direction. Together, countries in the Eurozone have encouraged each other to overcome crises.
Sometimes tough austerity measures are needed to overcome debt. Each country in the zone has guidelines for the ratio of their debt to their GDP. With supporting policies from other member countries, they have worked hard to meet these and stabilise the currency. Forex traders who buy and sell the Euro through CMC Markets or other providers can be assured that with greater unity, the currency will be backed by increased confidence in all the markets.