Merkel says Germany knows it must stimulate domestic demand

BERLIN Wed Jun 26, 2013 12:20am IST

German Chancellor and leader of the Christian Democratic Union (CDU) Angela Merkel (C) arrives for a party meeting with the Christian Social Union (CSU) in Berlin June 23, 2013. The building in the background is the television tower. REUTERS/Tobias Schwarz

German Chancellor and leader of the Christian Democratic Union (CDU) Angela Merkel (C) arrives for a party meeting with the Christian Social Union (CSU) in Berlin June 23, 2013. The building in the background is the television tower.

Credit: Reuters/Tobias Schwarz

BERLIN (Reuters) - Chancellor Angela Merkel said on Tuesday that Germany knows that it must stimulate domestic demand where possible in order to help boost growth in Europe.

Merkel said in a speech to business leaders from her conservative party that Germany, which has emerged largely unscathed from the euro zone crisis, is aware of the fact that it has a responsibility not only as an anchor of stability in the European Union but also as a motor for growth.

She said she would do everything to ensure "that Germany is not just the stability anchor of Europe but also the growth motor of Europe. We can contribute to that in Europe by stimulating domestic demand wherever possible."

Merkel said entrepreneurs were "our treasure in Germany and it would be fatal in the current fragile economic situation to tax such people more. It would be demotivating".

She spoke alongside Dutch prime minister Mark Rutte, who said Europe had to undertake reforms that were often unpopular, but he quoted German author Thomas Mann saying "anyone who is only ever loved is a clod".

(Reporting By Stephen Brown and Andreas Rinke; writing by Erik Kirschbaum; editing by Ron Askew)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Economic Pulse

REUTERS SHOWCASE

Deregulation Impact

Deregulation Impact

Private fuel retailers to dip toe, not dive back, into India  Full Article 

Gold Import

Gold Import

RBI will not change gold import rules - sources  Full Article 

Idea Results

Idea Results

Idea Cellular Q2 profit up 69 percent  Full Article 

An RBI First

An RBI First

RBI releases minutes of financial stability council's Aug meet  Full Article 

Global Shares

Global Shares

Japanese stocks lead shares worldwide, IBM weighs on Dow  Full Article 

IBM Chip Unit

IBM Chip Unit

IBM to pay Globalfoundries to take chip unit  Full Article 

IBM Earnings

IBM Earnings

IBM ditches 2015 operating EPS target, shares slump 7 pct  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage