German president sees debt as global problem

Oct 24, 2011, 10:39 GMT

Tokyo - German President Christian Wulff met Emperor Akihito and leading businessmen on the second day of a visit to Japan in which he pressed for a global turnaround on national debt.

The current sovereign debt crisis is not limited to Europe but has become a 'worldwide trend,' Wulff said in the world's most heavily indebted country, which owes about 200 per cent of its annual gross domestic product.

The current crisis is not a crisis of the euro, he said.

'The euro as a currency is a success story' but there is a banking crisis because 'speculation reached such a degree that exceeded all expectations,' Wulff said.

The sovereign debt crisis could be overcome if every country returns to conservative fiscal policies, said the president, who holds a ceremonial post in Germany.

Akihito welcomed Wulff at his palace in central Tokyo during the five-day visit to commemorate the 150th anniversary of diplomatic relations between Japan and Germany.

The worst nuclear accident in Japan's history, in which a nuclear reactor was damaged in March's earthquake and tsunami, was discussed during Wulff's meeting with the emperor and the subsequent luncheon for the German delegation.

Wulff plans to travel to the disaster area in north-eastern Japan Tuesday and speak to some of the thousands of people still living in evacuation centres.

The accident and future of nuclear energy was discussed when Wulff met business leaders, as were barriers for investment by German companies in energy and environmental technology in Japan.

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