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10 May 2012

Reuters: Merkel says growth on credit would deepen crisis


Chancellor Angela Merkel rejected calls from her centre-left opponents in Germany and Europe for economic stimulus policies that rely on new debt, warning parliament that "growth on credit" would just tip Europe deeper into crisis.

Merkel has come under pressure to relax the austerity measures that, as leader of Europe's biggest economy, she has prescribed as the remedy for the eurozone debt crisis.

But Germany's centre-right leader, standing her ground, told the Bundestag  in a speech that reducing debt and encouraging growth were "twin pillars" of European policy, rather than two alternative paths. "Growth through structural reforms is sensible, important and necessary. Growth on credit would just push us right back to the beginning of the crisis, and that is why we should not and will not do it", she said.

Full article



© Reuters


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