New debt would be 'worst possible' error in EU: Schaeuble

Running up new debt would be "the worst possible" thing to do, German Finance Minister Wolfgang Schaeuble said on Tuesday as a debate resurfaces over an easing of EU fiscal rules, AFP reports.

"Running up new debt would be the worst possible mistake we could make," Schaeuble told German public radio InfoRadio in an interview.

EU members should "stick to the rules we jointly drew up. Nothing more, nothing less," the minister said, amid a growing debate on whether countries such as France and Italy should be given more time to get their finances in order.

Germany "provides the proof that a sensible fiscal policy and a continuous reduction of the deficit is one of the pre-conditions for sustainable growth," the minister said.

Germany's vice chancellor and economy minister, the Social Democrat Sigmar Gabriel, recently suggested that economically embattled countries be offered some latitude in meeting EU rules while they got their finances in order.

But Chancellor Angela Merkel was quick to respond that she sees no need to modify Europe's budget rules.