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Europe needs a finance minister: Germany
German Finance Minister Wolfgang Schaeuble.

German Finance Minister Wolfgang Schaeuble says he believes Europe needs a finance minister to ensure a common fiscal policy.

"We have put in place a monetary policy with the European Central Bank. Monetary policy should have a correspondence with a common fiscal policy," Mr Schaeuble told a German radio station on Thursday.

"That is the reason why we have need of a parliament, a government and something corresponding to a finance minister."

Creating a eurozone finance minister has been a recurrent issue for debate among the 17 nations that share the euro, and will likely move back to the front burner after agreement at a summit last week to pursue deeper integration to solve the massive debt crisis.

Mr Schaeuble said national parliaments were going to need to give up some of their power over the purse strings.

"The current situation in which all decisions with a budgetary effect should be justified before national parliaments can't last in the long term," he said, calling for a stronger role for the European Parliament.