WASHINGTON Oct 7 Germany has money in the
budget to increase public spending on infrastructure and should
do that, the head of the International Monetary Fund's European
department said on Friday, but cautioned that this won't solve
Europe's slow growth problem.
"We clearly think that Germany has some fiscal space and
that it should use it, but ... the problem with low growth in
the euro zone is mainly structural and requires structural
reforms in individual countries," the head of the European
department Poul Thomsen told a news briefing.
"We should not believe that just to get Germany to do more
is going to solve Europe's growth problem," he said.
Germany is the biggest economy in Europe and had a budget
surplus of 0.7 percent of GDP last year and is expected to have
a surplus, although smaller, also this year and next.
(Reporting By Jan Strupczewski)