Germany fails to ink European growth deal
Source: Agencies |
June 14, 2012, Thursday
|
Print Edition
Print Edition
GERMAN Chancellor Angela Merkel and the country's opposition leaders failed to reach an agreement on a European growth initiative in a new round of talks yesterday, according to participants.
Merkel and top opposition lawmakers held talks at Berlin's chancellery over policies to promote growth in Europe's ailing southern nations and the swift introduction of a financial transaction tax.
Germany's center-right government needs the support of opposition parties to secure a two-thirds majority in Parliament in order to pass the European Union's new treaty enshrining fiscal discipline.
"Because of the European economic crisis, the government is now forced to do something for growth and employment, but there are still no concrete proposals," Social Democrats' party chief Sigmar Gabriel said.
"We will waste German taxes for bailouts if we don't at the same time use money for actually saving the nations" by fostering growth in those economically struggling countries, he added.
Merkel has maintained that sustainable growth to overcome the debt crisis can be best fostered across Europe by structural reforms and a more efficient use of existing EU funds, not new stimulus spending that might be financed by yet more borrowing.
"Fiscal consolidation is a decisive point" for Europe's governments, said conservative parliamentary caucus leader Volker Kauder, a close Merkel ally. "For growth, structural reforms are necessary. It's not sufficient to throw money around."
Merkel is widely viewed as the European leader most prominently championing fiscal discipline and austerity measures, but a robust economy and rising tax take have spared her government of pushing through any sharp cuts at home.
Merkel and top opposition lawmakers held talks at Berlin's chancellery over policies to promote growth in Europe's ailing southern nations and the swift introduction of a financial transaction tax.
Germany's center-right government needs the support of opposition parties to secure a two-thirds majority in Parliament in order to pass the European Union's new treaty enshrining fiscal discipline.
"Because of the European economic crisis, the government is now forced to do something for growth and employment, but there are still no concrete proposals," Social Democrats' party chief Sigmar Gabriel said.
"We will waste German taxes for bailouts if we don't at the same time use money for actually saving the nations" by fostering growth in those economically struggling countries, he added.
Merkel has maintained that sustainable growth to overcome the debt crisis can be best fostered across Europe by structural reforms and a more efficient use of existing EU funds, not new stimulus spending that might be financed by yet more borrowing.
"Fiscal consolidation is a decisive point" for Europe's governments, said conservative parliamentary caucus leader Volker Kauder, a close Merkel ally. "For growth, structural reforms are necessary. It's not sufficient to throw money around."
Merkel is widely viewed as the European leader most prominently championing fiscal discipline and austerity measures, but a robust economy and rising tax take have spared her government of pushing through any sharp cuts at home.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
