Merkel aims to restart German economy
Chancellor Angela Merkel today said she aimed to get Germany’s economy back among the top three in Europe, sending a signal of optimism as she set out her new government’s programme.
Merkel’s left-right coalition aims to boost sluggish growth and tackle 11% unemployment.
“We want to create the conditions for Germany once again to stand among the first three in Europe in 10 years,” she told politicians.
Merkel said her government would try to find a compromise with the EU over its 2007-2013 budget, but warned Germany would not accept too great a burden.
Merkel told parliament’s lower house that the stakes were high in December’s EU summit and said she would press for a lasting “solution which is in the pan-European interest”.
“Germany is prepared to contribute to a sensible compromise,” she said.
Merkel said Germany’s “frightening” debt levels meant the economy would not be able to tolerate new budget obligations.
In June, an EU summit ended without agreement after Luxembourg Prime Minister Jean-Claude Juncker proposed a spending cap of 1.06% of gross domestic product and a freeze of Britain’s controversial annual €4.6bn rebate on its EU contributions until 2013, with the French, in exchange, being prepared to renegotiate farm subsidies.
