Eurozone on right track in fighting debt crisis
- German Finance Minister Wolfgang Schaeuble said that eurozone
countries were on the right track in fighting the debt crisis, although
they were still "not over the hill."
"The auctions in the first weeks of the year of Italian, Spanish and
other countries' debt show that we have reason to be confident that
we're not just on the right path," Schaeuble said as he arrived for the
European Union (EU) finance ministers' meeting. Market sentiment has
improved lately after the European Central Bank's 489-billion-euro
(about 637 billion U.S. dollars) three-year loans partially eased the
funding strains facing the eurozone's banking sector.
The borrowing costs of the Italian government continued to decline on
Monday, with the 10-year Italian government bond yields falling 10 basis
points to 6.17 percent, which was sharply down from this month's high of
In the meantime, there are still a long way to go before the debt
crisis can be solved, Schaeuble said. "We're not over the hill, but
we'll be continuing on the right path successfully this year."
EU Finance Ministers are scheduled to continue negotiations on the
European Stability Mechanism (ESM), the permanent rescue fund for the
eurozone, after eurozone finance ministers discussed on Monday. "We made
good progress but it's decisive we finished negotiations on the ESM
yesterday," Schaeuble told reporters.