Swiss Finance Minister Karin Keller-Sutter says rising public debt in Europe and beyond could trigger a euro crisis. She named the United States and France as sources of concern, and said energy prices are adding to policymakers' worries.
Swiss Finance Minister Karin Keller-Sutter warned on Friday that rising public debt levels in Europe and beyond pose a risk to economic stability and could trigger a euro crisis.
She spoke to Swiss national broadcaster SRF in Bangkok, on the sidelines of the annual meetings of the International Monetary Fund and the World Bank. According to Keller-Sutter, energy prices are also fuelling concerns among policymakers.
Switzerland has one of the lowest levels of public debt in Europe, but Keller-Sutter said it was important to see the bigger picture. Because countries are interconnected internationally, she said, Switzerland is also vulnerable if a debt crisis arises from the sovereign debt of major countries, particularly the United States and Europe.
On France, Keller-Sutter told SRF: "that could lead to a euro crisis". France's public debt, budget deficits and tepid economic growth have fed concern about its finances, as political fragmentation has complicated fiscal consolidation efforts.
Source: Reuters via Investing.com
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