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A
bailout review has dragged on for months because of a rift
between the European Union and the International Monetary Fund (IMF)
over Greece's fiscal progress.
But Schaeuble, speaking in Sendai, northern Japan, said he
expected the Eurogroup of euro zone finance ministers to come to
an agreement at a meeting next Tuesday, adding he had already
spoken to IMF chief Christine Lagarde.
"I'm optimistic that what I've said still stands, namely that we
won't get a new crisis in and around Greece," Schaeuble said
ahead of a meeting of G7 finance ministers and central bank
governors.
The Greek government presented a bill in parliament on Wednesday
that raises taxes, frees up the sale of banks' non-performing
loans and sets up a new privatization fund with its foreign
creditors in exchange for more bailout funds. Passing reforms
before the Eurogroup meeting is one demand made by lenders to
ensure their review is wrapped up.
Schaeuble also warned about the effects of ultra-loose monetary
policy around the world: "You also know that I think the high
level of debt and liquidity tends to foster volatility and so
nervousness."
He said he thought the high level of volatility on financial
markets was greater than could be justified by economic
developments and was partly due to geopolitical risks.
On the possibility of Britain leaving the European Union,
Schaeuble said: "We will all agree to hope that the British
people make a decision that is in Britain's interests and live
up to their responsibility."
Britain holds a referendum on whether to leave the 28-nation
bloc on June 23.
Schaeuble rejected demands for the German government to open its
coffers further to provide economic stimulus, as called for by
the United States and Japan. Schaeuble said Germany had robust
domestic demand and a strong labor market, was Europe's growth
locomotive and had significantly boosted investment.
(Reporting by Gernot Heller; Writing by Michelle Martin; Editing
by Madeline Chambers and Gareth Jones)
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