UK 'has more debt than eurozone'

Speaking in Parliament, Mr Schaeuble also said he was worried by the policies pledged by the recently elected government in Japan, which has vowed a big increase in spending to bolster the econony, AFP reported.

"Britain has a higher state debt than the eurozone average and I don't even want to mention the United States of America," Schaeuble said.

"And I will add: I am quite concerned by the new policies of the newly elected government in Japan."

He said there was an "excess of liquidity" on the global financial markets, which is being fuelled by a "false understanding of central bank policy".

Since coming to power last month, Japanese Prime Minister Shinzo Abe has promised huge spending and called for central bank action to boost the economy.

The Bank of Japan (BOJ) will hold a policy meeting early next week, with expectations it will unveil a further loosening of monetary policy.

BOJ governor Masaaki Shirakawa said recently that Japan would pursue "aggressive" easing to inject new life into the world's third-largest economy.

The US ran up against its current debt limit at the end of 2012, but the government is using "extraordinary measures" to extend the limit until late February. / Telegraph