German Minister: Weak Govt Finances Danger To Euro-Zone

The weak public finances of some euro-zone nations are a danger to the entire currency bloc, German Economics Minister Rainer Bruederle said Thursday without naming any country specifically.

He also told parliament that Germany must "remain the stability anchor in Europe" and criticized euro-zone nations with weak finances.

"A few European nations are exhibiting dangerous weaknesses," Bruederle said. "That could have a fatal impact on all countries in the euro zone."

Portugal's confirmation earlier this week that it's budget deficit was larger than expected has fueled fears that Greece isn't the only country in the euro zone with deep fiscal problems. Spain, Italy, and Ireland are also grappling with budget problems which have been compounded by weak growth and tax revenue.

While not naming any country specifically, Bruederle said there would be no bailout aid for problem nations. European governments should coordinate their recovery strategies, but they shouldn't rely on a "European economic government," he said.

Bruederle said U.S. President Barack Obama's proposals for bank regulation lend momentum to what is a critical process, but the best setting to design such measures internationally remains the Group of 20 industrialized and developing nations.

"The signal is important," Bruederle said of Obama's plan.