Schaeuble urges ECB to reduce euro zone liquidity

BERLIN Fri Apr 19, 2013 2:02pm BST

German Finance Minister Wolfgang Schaeuble addresses the lower house of parliament Bundestag in Berlin, April 18, 2013. REUTERS/Fabrizio Bensch

German Finance Minister Wolfgang Schaeuble addresses the lower house of parliament Bundestag in Berlin, April 18, 2013.

Credit: Reuters/Fabrizio Bensch

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BERLIN (Reuters) - German Finance Minister Wolfgang Schaeuble said the European Central Bank (ECB) should try to limit the amount of liquidity in the euro zone, although he also acknowledged the "precarious" economic plight of some countries in the region.

"There is much money in the market, in my view too much money," Schaeuble said in an interview for the German economic weekly Wirtschaftswoche released on Friday.

"If the ECB tries to use what leeway it has to reduce this great liquidity a little I would welcome that," he said, adding that the ECB had done well to bring inflation below 2 percent.

"We in Germany should not forget that many European countries are still in a precarious situation with economic growth," he added. But pumping liquidity into their economies without far-reaching structural reforms would not create the conditions for sustainable growth. Schaeuble said.

(Writing by Gareth Jones)

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