Europe does not face a threat of deflation following austerity measures taken to cut deficits, German finance minister Wolfgang Schauble said.
In an interview with Italy's Il Corriere della Sera, Mr Schauble said Germany's federal deficit this year would be €65 billion and would be reduced by €11 billion next year, he said.
"To speak about deflation in my opinion does not therefore make sense," he said.
Because of its structure and demography, Germany had a potential long-term growth rate of 1.5 per cent."
Asked if Germany would introduce a bank tax and a tax on financial transactions, he said: "We have to find Europe-wide solutions."
Mr Schauble said the idea of an EU member state being expelled if unable to meet its commitments was "unrealistic".
Asked if Germany would accept a non-German president at the European Central Bank, he said it was important the ECB remained independent.
"Nationality is not an important question," he said.
Reuters