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

REUTERS SHOWCASE

School Shooting

School Shooting

Two killed, four wounded in Washington state school shooting.  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

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