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Merkel says Germany has done its part on stimulus

  Chancellor Angela Merkel said on Thursday that Germany had spent more than many other countries to boost its economy and would wait until the impact of these steps was clear before considering more stimulus.

Speaking in the Bundestag lower house of parliament before heading to a European Union summit in Brussels, Merkel said Germany would not bow to pressure from within the EU and abroad to spend more.

“We are at the very top, we are spending more than others and I think that’s right because as an export nation, we have an interest in ensuring the global economy gets back on its feet,” Merkel said.

She vowed to oppose any additional Europe-wide investment or stimulus projects at the summit which did not focus on the immediate needs of the economy.

“Germany has made it clear that additional measures can only be accepted, and we will only agree to them, if they start in 2009 or 2010 because it makes no sense to spend money in 2013, 2014 or 2015 when the crisis has long been overcome.”

The United States is pressuring European countries to agree new spending measures when the G20 group of established and emerging economic powers meets in London early next month.

But Germany, which has pushed through two stimulus packages it estimates are worth €81 billion, wants the meeting to focus on introducing new regulations it hopes will rein in free-market excesses and prevent future crises. (Reuters)