Key facts
- Rising public debt in Europe and the US is a risk to financial stability.
- Keller-Sutter warned of a potential euro crisis.
- France's finances were cited as a concern due to high debt and deficits.
- The US debt was described as a 'time bomb' by the minister.
Swiss Finance Minister Karin Keller-Sutter warned on Friday that escalating public debt in Europe and the United States presents a significant threat to international financial stability and could potentially lead to a euro crisis. Speaking from Bangkok on the sidelines of the IMF and World Bank annual meetings, Keller-Sutter highlighted that energy prices are also contributing to concerns among global policymakers.
Keller-Sutter contrasted Switzerland's own low public debt and disciplined fiscal approach with the financial situations in other countries. She specifically pointed to France, describing its high debt, budget deficits, and sluggish economic growth as worrying, and suggested this situation could precipitate a euro crisis. She also characterized the United States' debt levels as a 'time bomb,' referencing a recent stock market 'mini-crash' as a warning of potential instability.