Asian pact highlights euro, Germany says

BERLIN - Agence France-Presse

A surprise currency agreement between China and Japan, the two Asian giants, highlights the importance of a united Europe and a common currency, according to German Finance Minister Wolfgang Schaeuble.

“Over the Christmas break, Japan and China surprised us with the news of a currency pact,” Schaeuble told rbb info radio in an interview yesterday.

‘Europe has good chances’

“These are developments that show it’s good that we have a unified Europe. United, Europe is the strongest economic area in the world. We have good chances to pursue our interests and then the opportunity to implement them in the world,” he said.

Schaeuble’s comments come after China and Japan reached agreements that will make it easier for Chinese and Japanese companies to trade in each other’s currencies, rather than using the dollar, as Beijing seeks to increase the use of the yuan in global trade.

Schaeuble also reiterated his call for eurozone countries to tackle the root of the current crisis and bring down their debt.

“The countries must solve the causes that led to the crises, there is no way around it,” he said.
“We can help them by providing them the necessary time, which we do with the bailout funds and other things, but there is no way around solving the debt crisis in those countries which have them.”