Spanish government’s economic reform on the right track, says Germany’s finance minister, Wolfgang Schaeuble

German finance minister Wolfgang Schaeuble with Angela Merkel

Categorically rejecting any suggestion of diluting the strong medicine of austerity and structural reform being implemented in the Eurozone, German finance minister Wolfgang Schaeuble has praised Spain for “doing everything right”.

Schaeuble – who told German daily newspaper Handelsblatt that “saving and growth are not a contradiction, the (rescue) programmes do not deprive countries of purchasing power as is so often asserted,” – no doubt made Spanish PM Mariano Rajoy’s day when he affirmed yesterday that: “The Spaniards are doing everything right, and nonetheless they are coming under market pressure.”

Insisting that “we cannot spare the affected countries the reforms,” he emphasised Germany’s support for greater European integration in the long term, which he stressed would be reached by taking a step-by-step approach.