"If there is a proven need for such a step in Europe, Germany won't block it," he is quoted as saying.

Schaeuble was responding to the Chief Executive of German re-insurer Munich Re AG (MUV2.XE), Nikolaus von Bomhard, who said he favors separating investment banks from other banking activities. Such a step is regarded as a means to strengthen the stability of the financial system.

Schaeuble added more must be done in terms of financial market regulation, according to Welt am Sonntag.

Lawmakers could tighten rules for management compensation so that variable remuneration can't be payed out at short notice and must be invested longer-term, the newspaper reports him as saying.

Full interview:

http://www.welt.de/wirtschaft/article108410639/Noch-nicht-alle-haben-unsere-Strategie-verstanden.html