Germany expects ECB to gradually normalize euro zone rates: Scholz

[July 06, 2018]  BERLIN (Reuters) - German Finance Minister Olaf Scholz said on Friday he expects the European Central Bank to eventually start gradually raising interest rates in the euro zone.

German Vice Chancellor and Finance Minister Olaf Scholz gestures during a news conference to present the fiscal plan for 2019-2022 in Berlin, Germany, July 6 2018. REUTERS/Axel Schmidt

"We expect and hope for a gradual normalization of interest rates," Scholz said. "We cannot assume that interest rates paid by the state will remain as low as they are now."

In a rare jab at U.S. President Donald Trump, Scholz said Germany was raising pension entitlements as a measure to avoid having "Trumps" coming to power in Germany.

(Reporting by Tom Koerkemeier; Writing by Joseph Nasr; Editing by Thomas Escritt)

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