Skip to comments.Merkel presses debt-strapped Europe on reforms (wants to end deficit spending)
Posted on 06/13/2012 10:14:38 PM PDT by Lorianne
BERLIN German chancellor Angela Merkel said Tuesday that Europes heavily indebted nations must push ahead with structural reforms to get their economies back on track and MUST NOT RELY ON GOVERNMENT SPENDING TO FOSTER GROWTH.
Labor market and other reforms do not heal economies overnight but are the right way toward sustainable growth, Merkel said. It would be absolutely wrong not to pursue the path of reforms, she added.
The leader of Europes biggest economy has long advocated a mix of austerity measures and structural reforms, especially for struggling southern European nations like Greece, as well as Ireland, which had to be bailed out by its European peers.
Over the past weeks, as the continent has teetered on the brink of a recession, she has increasingly come under fire from many of her European counterparts, who have rallied behind French President Francois Hollandes calls for a regional growth strategy.
Germany has shown solidarity with its European partners, Merkel told a gathering of her conservative Christian Democratic Union in Berlin, but we must learn from the mistakes of the past and END GOVERNMENTS' ADDITION TO FINANCING SPENDING WITH BORROWED MONEY.
Joerg Asmussen, a member of the European Central Banks executive board, backed Merkels stance but stressed that more must be done over the coming years toward a deeper integration of the eurozone to get over the currency unions construction mistakes.
(Excerpt) Read more at malaya.com.ph ...
As the only sane person in the room, she really has her work cut out for her.
Germany has a bias toward slow monetary growth which will not allow the rest of the continent to grow sufficiently. This seems to me to be the one inconsistency in the EU which cannot be resolved without Germany changing its ideas here which I don’t see happening.
Some around here could probably tell us what the monetary targets for the ECB are.
She’s fighting the Solyndra approach: “Cure debt with more debt”
Send Obama to her for some schooling.