German EconMin rejects euro zone policy coordination

* Dismisses new French calls for closer econ coordination

* Bruederle says opposes a transfer union

BERLIN, Dec 23 (BestGrowthStock) – Germany’s Economy Minister Rainer
Bruederle rejected on Thursday new calls by France for euro zone
members to coordinate their economic policies more closely.

“An economic governance for Europe is not the right project.
Whoever thinks in the direction of European economic governance,
is working on the wrong construction site,” Bruederle said.

French Economy Minister Christine Lagarde was quoted by a
German newspaper on Wednesday as saying that Paris wants all 16
euro zone governments and any other interested European Union
members to align their economic and financial policies, such as
tax legislation, more closely. [ID:nLDE6BL1QK]

The euro zone debt crisis had shown that the European Union
needed to monitor economic policy in the region not just
individual states’ budgets, Lagarde said.

Bruederle dismissed the idea.

“Right now we must find a sustainable protection mechanism
for the single currency. (…) A European monetary fund only
makes sense as an instrument of discipline – it must not pave
the way to a transfer union,” he said in a statement.

Bruederle is a free-market economic liberal from the German
government’s junior coalition partner Free Democratic Party
(FDP). He has been known to take different standpoints to senior
Christian Democrats in the cabinet led by Chancellor Angela
Merkel and Finance Minister Wolfgang Schaeuble.

Bruederle’s influence in his party has grown since he
prevailed earlier this year over Merkel in rejecting pleas by
carmaker Opel (GM.N: ), the European arm of General Motors
[GM.UL], for German state aid. He is now widely considered to be
a candidate to potentially replace the widely unpopular FDP
party boss, Guido Westerwelle. [ID:nLDE6BK17A]
(Reporting by Christiaan Hetzner; Editing by Susan Fenton)

German EconMin rejects euro zone policy coordination