Merkel Presages G-8 Saying Europe Can’t Aid Growth With Stimulus
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German Chancellor Angela Merkel rejected deficit spending as a way to spur growth in the euro area, sharpening her tone before meeting with fellow leaders from the Group of Eight nations next week.
“Some believe that growth is only possible via new state investment programs, even if it’s done by taking up debt,” Merkel said in a speech to the IHK German chamber of commerce group in Berlin today. “Over a span of 40 or 50 years in Germany, this theory didn’t turn out to be true. It didn’t work. And there is zero evidence that it will work in future.”