Feb. 11 - Finance Minister Wolfgang Schaeuble tells the Reuters Euro Zone 2014 summit there is no deflation danger in Europe, but that Germany does feel the impact of emerging markets being under pressure.
Welcome to the 2014. Reuters summit on New Year's on we're very pleased today to have German finance minister ball and so -- don't let us. Mr. five thank you for joining us. The first question I have is about vote in Switzerland on Sunday. Swiss citizens voted in referendum to limit introduced limits on immigration. From EU countries. What is your reaction to this he's been in Switzerland in danger of losing. Its privileged access to the more. -- presents them. You know I regret the decision that resulted from the Swiss referendum. But one has to respect it and take it seriously. Now the authorities in Switzerland but the governments of parliament need to decide how to proceed. And they need to negotiate with the European institutions. Power system in. I think there's a good chance that this was stick with the feud. That's a close connection to Europe is in their own interests. But it's clear the free movement of people is essential element of European integration. This must be implemented within three -- -- if I understand correctly. Constitutional court agreed on Friday to refer. A complaint against European central bank's online scheme to European Court test that's. But the court also said there was good reason to believe that the scheme was. Unconstitutional that it exceeded the ECB's mandate. Ken -- he instrument it Mario rocky. Introduced last year still use after this decision. The court in Karlsruhe. Some experts are saying that it's essentially dead. The maximum was mind's -- and this is to at least. It is correct that the constitutional court decided -- If it had doubts about whether a sudden I serious compatible with European -- to pass it's on to the European Court of Justice. But the part of that success. Of the young -- program in. Calming financial markets was that it could be used in an emergency. Is that. Is that has that possibility not damaged in some way from this court system. -- it just didn't make -- honest enough. I don't think the financial markets necessarily understood everything that was in DO NT. What they understood was what Marriott track he said in the summer 2012 in London and we will do what is needed and believe me it will be enough. And I think the financial markets also -- -- that government leaders would do everything necessary to keep the European currency stable. In the first -- the question was whether it's Germany and France really stood ready to defend the currency. Today there is no doubt. When leaders of government on the 1 hand and the Central Bank on the other say they will do what is necessary. And financial markets need not -- the Euro will remain stable currency. We've seen a great deal of turbulence in emerging markets in recent weeks how big a threat has this to the European economy. Has it increased the threat of inflation. As an unknown like I mean if that's there is. -- deflation danger in Europe. On this site agree fully with the evaluation of the EC being and its president Mario Draghi. We understand deflation as a reluctance to spend in the anticipation of falling prices. And -- any signs of this so difficult situation in some emerging markets affects is of course. We're all dependent on exports Germany more than other countries. In recent years the good performance and the emerging markets helped balance out the weakness of the European economies. Now Europe is a little stronger the American economy has done very well. So overall the world economy will remain stable and we will also help the emerging markets within the limits about possibilities to solve that problems. Just is based at bios in past years. At the end of next week the G-20 finance ministers are due to meet in Sydney.