Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Angela Merkel now 'backing EU growth measures'

 

Thursday 24 May 2012 18:05 BST
Comments
Angela Merkel strictly opposes the idea of fostering growth through more spending, saying it would only make Europe's debt woes worse
Angela Merkel strictly opposes the idea of fostering growth through more spending, saying it would only make Europe's debt woes worse (Getty Images)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Germany's opposition leader says that Chancellor Angela Merkel has accepted the need to add a separate set of measures promoting growth to the European Union's treaty enshrining fiscal discipline.

Sigmar Gabriel told reporters after a two-hour closed-door meeting between Mrs Merkel and top politicians that the government has "significantly moved toward accepting a pact for growth and investment".

For Germany to formally approve the so-called fiscal pact, Mrs Merkel's centre-right government needs the support of opposition parties to secure a two-thirds majority in Parliament.

"The government's blockade on this issue has been broken," Mr Gabriel said. "We see a whole range of possibilities alongside the fiscal pact to do something to foster growth and employment in Europe, especially in fighting youth unemployment," he added.

One of Mrs Merkel's top allies, conservative parliamentary caucus leader Volker Kauder, confirmed that both sides will now work out proposals and meet again on June 13, also to tackle "the question how a concrete growth strategy will look like."

Mr Gabriel's Social Democrats - emboldened by similar demands by France's new centre-left President Francois Hollande - have said they would only vote for the called fiscal pact if it is amended to include an economic growth pact.

Mr Hollande's election this month shifted the political tide in Europe away from talk about austerity measures toward ways of fostering growth as Europe is on the brink of a recession, with southern European nations such as Greece, Portugal or Spain particularly hard hit.

Mrs Merkel recently also started talking about spurring growth, although she strictly opposes the idea of fostering growth through more spending, saying it would only make Europe's debt woes worse. Instead, she maintains that growth can be fostered through a more effective use of existing EU funds and implementation of structural reforms.

However, it remained unclear what exactly a growth pact would entail, and whether Mrs Merkel has accepted that more spending might be necessary.

The government wants to pass the legislation on a tight timetable together with a bill for Europe's new permanent rescue fund by the end of June. The legislation for the new firewall, the European Stability Mechanism, must pass by late next month because the ESM is set to start operating on July 1.

The opposition has said that it will vote for the ESM on time, but threatened to block the fiscal pact unless Mrs Merkel makes concessions.

AP

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in