BERLIN (MNI) – German Chancellor Angela Merkel said Monday that the
EU fiscal rescue package is ready to be drawn on if need be.
Yet, the Chancellor declined to comment on the specific case of
Spain in order to “not create a self-fulfilling prophecy.”
Speaking at a joint press conference with French President Nicolas
Sarkozy, both said they will jointly push for an EU economic government
consisting of the leaders of the 27 member states.
If there arise specific problems concerning the euro, then the
heads of state and governments of the 16 Eurozone member states will get
together, they said.
Moreover, Merkel and Sarkozy announced that they will send a joint
letter to the Canadian G20 presidency, calling for more efforts on
financial market regulation and the introduction of a bank levy and an
international financial transaction tax.
Turning to domestic matters, Merkel said she did not believe that
her government’s budget consolidation program will choke off growth in
the country.
Rather, citizens will gain confidence when they see that budgets
are consolidated and will then tend to spend more, she argued.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
[TOPICS: M$G$$$,M$X$$$,MGX$$$,MFX$$$,MFGBU$]
