+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Europe's most important finance minister says we're 'moving towards the next bubble'

Sep 11, 2015, 16:06 IST

German Finance Minister Wolfgang Schaeuble gives an interview as part of a Reuters Euro Zone Summit, at the finance ministry in Berlin February 2, 2015.REUTERS/Fabrizio Bensch

Wolfgang Schaeuble, the German finance minister, is undoubtedly one of the most important people in European economic policy.

Advertisement

The European Central Bank's Mario Draghi might edge him out for the number one spot, but out of the finance ministers, everyone knows that Schaeuble reigns supreme.

So when he's worrying about a financial bubble, as he did in a speech today, it's worth paying attention.

You can take a look at the text of the speech here, issued by the ministry of finance, but you won't find the bubble comments - it seems he ad-libbed it.

FastFT has the relevant section of the speech:

Advertisement

"It is certain that we are moving towards the next bubble," said Mr Schäuble in gloomy speech in Berlin, writes Stefan Wagstyl. "We should draw the lessons from the last [global financial] crisis."

That's a bold comment - partly, it's just a statement of fact (the next bubble gets closer every day), but as the European Union's most important finance ministers, it's not a remark made lightly.

The Financial Times also notes that Schaeuble said monetary policy could not do all the heavy lifting - a pretty common complaint from German policymakers.

The Wall Street Journal notes that in March, Bundesbank president Jens Weidmann was suggesting that German house prices were overvalued up to 20% because of easy money policies.

NOW WATCH: Turns out the McDonald's secret menu is real - here's what happens when you try to order off of it

Please enable Javascript to watch this video
You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article