Germany's determination to European integration not to be underestimated

As the biggest beneficiary of euro since the common currency was launched, Germany's commitments to laying a solid foundation to the fiscal and banking unions to consolidate the shaky single monetary union must not be underestimated, an noted German professor said.

In an exclusive interview with Xinhua, Gu Xuewu, director of the International Relations Center for Global Studies (CGS) at Bonn University said that the purpose of austerity was to impose much-needed restructuring reforms upon crisis-hit south European countries, and help them to shake off the heavy burdens of welfare redundancy, so as to boost economic growth.

Commenting on the newly founded anti-euro party in Germany, Gu said it only reflected the anxiety and disgruntlement of some German social groups towards current policies. Over-interpretation of it would lead to a misjudgment of the mainstream public opinion in Germany, he said. "Germany has long been a robust beneficiary since the launch of the euro, even since the outbreak of the debt crisis, as you see, the issue of state's treasury bonds of Germany carry almost no interests," Gu said.

He described the austerity and restructuring reforms as two desperate remedies indispensable for countries mired in the crisis. "I would like to say that Germany is fully determined to remolding Greece rather than simply helping it with the bailout," Gu said, adding that there could not be any real economic growth until all the compulsory economic restructuring reforms are implemented and completed. "Only through deeper-level and radical reform and restructuring efforts, could a virtuous cycle be pulled off both to maintain the core of the social welfare and streamlining the economy and enhancing competitiveness, so as to realize sustainable development," he said.

With regards to the U.S.-advocated Quantitative Easing as a stimulus to the growth, Gu insisted it runs counter to the basic ethos of the Germans. "It can be better illustrated in terms of the divergence to the latest landscape in energy prospecting, with Germany's total abandonment of nuclear energy and full-swing to the clean energy on one side, and U.S. revitalization of oil and gas which is characterized by the disputable Shale-gas mining," Gu said. "Which mode could be more sustainable? When the much-hyped new industrial revolution based upon renewable energy looms, it's not hard to tell," he said.

Gu also corroborated his belief that a stable euro could benefit China in various aspects, particularly the safety of some 26 percent of China's foreign exchanges reserves which are valued in euro, as well as China's exports to the eurozone which is one of China's largest overseas export markets.

Gu Xuewu

Director of the International Relations Center for Global Studies (CGS) at Bonn University