Gabriel, whose Social Democrats (SPD) are junior partner to Chancellor Angela Merkel's conservatives in her ruling grand coalition, said strenuous efforts by countries like France and Italy to reduce their fiscal deficits came with political risks.

The SPD is expected to choose Gabriel, their long-standing chairman who is also economy minister, to run against Merkel for chancellor in September's federal election, senior party sources said on Thursday. Asked if he really believed he could win more votes by transferring more German money to other EU countries, Gabriel replied: "I know that this discussion is extremely unpopular."

"But I also know about the state of the EU. It is no longer unthinkable that it breaks apart," he said in the interview, published on Saturday. "Should that happen, our children and grandchildren would curse us," he added. "Because Germany is the biggest beneficiary of the European community - economically and politically."