"Inflation is a tough beast," said Lindner at an event of the association of German banks, adding that inflation is a risk not only for the financial system, but also for the economy.
"Fiscal policy should not contradict monetary policy," the finance minister said, asking for a consolidation of public finances.
Subsidies are not the solution to current problems, according to Lindner - "we should focus on structural reforms to promote growth," he said.
Lindner added there are no reasons to worry about financial
stability in Germany following the banking turmoil in the U.S.
and with Credit Suisse .
"There isn't a banking crisis," he said. "Our banks have a
strong capital basis."
(Reporting by Maria Martinez, editing by Emma-Victoria Farr and
Sandra Maler)
