Business World

Sunday 18 February 2018

German Finance Minister sees no sign of deflation spiral in Europe

Wolfgang Schaeuble, Germany's finance minister
Wolfgang Schaeuble, Germany's finance minister

Alexandra Hudson

German Finance Minister Wolfgang Schaeuble said this morning he sees no signs at all of a deflation spiral in Europe and ECB President Mario Draghi had made a convincing case at the recent IMF meeting that Europe's low inflation held no deflation risk.

In an interview with Germany's Deutschlandfunk radio he added, "of course the exchange rate is strong and if it were to continue to rise then it could negatively impact economic development in Europe, which has improved but needs to improve further. If European goods become too expensive and imports too cheap then that is not good."

Schaeuble added the Ukraine crisis was the biggest geo-political risk facing the world economy.

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