Merkel: Do not ask for growth with borrowed money
German chancellor Angela Merkel said it is necessary for Greece and Spain to further shrink their economies to reach the goal of addressing their budget deficits.
Speaking in the German parliament she said the reorganization of troubled states - like Greece and Spain - will only come through the shrinking of their economies, and that "Europe cannot discuss growth measures that will rely on borrowed money." She described the shrinking of the economies as a "necessary and natural development."
Regarding the "economic assistance of billions" given to Greece, Merkel said she considers fulfilling the commitments as a "high commodity" and once again supported the need for greater control and the possibility of sanctions by the European Union.
She added that the budget agreement is a step in that direction, and that at certain points even more power to impose sanctions should be given to Brussels, where a member state fails to comply with the rules.
Speaking in the German parliament she said the reorganization of troubled states - like Greece and Spain - will only come through the shrinking of their economies, and that "Europe cannot discuss growth measures that will rely on borrowed money." She described the shrinking of the economies as a "necessary and natural development."
Regarding the "economic assistance of billions" given to Greece, Merkel said she considers fulfilling the commitments as a "high commodity" and once again supported the need for greater control and the possibility of sanctions by the European Union.
She added that the budget agreement is a step in that direction, and that at certain points even more power to impose sanctions should be given to Brussels, where a member state fails to comply with the rules.
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