2010-06-22

German press on Merkel-Obama dispute

Merkel lässt Obama abblitzen

Here's Google's translation:
Merkel makes Obama slapped down
The federal government engages in confrontation with America. "If we do not come to a sustainable growth, but again generate bloated growth, we will pay by the next crisis," Chancellor Angela Merkel said after the meeting with the Expert Group on New Financial Architecture "in Berlin on Monday. "It's not about a radical austerity program, but it is a question that one can not help with sustained economic growth, the same stimulus packages go on and on, one has been enforced."

So that they openly opposed President Barack Obama. This is repeated in a letter to the leaders of the twenty most important economies (G20) warned of the mistakes of the past, when the economic stimulus has been withdrawn too soon. He also called on the major exporting nations to increase their domestic demand. The countered Merkel, Germany is part of the internal market and the trade of the European Union was balanced. This is "the decisive factor."
Merkel used the term "monetary emissions" to describe the quantitative easing and bailouts last year, her position has not shifted.
Here's a Bloomberg report on the spat:
Merkel Tells Obama Germany Won’t Heed Calls to Focus on Growth
Obama’s letter urged the G-20 to reaffirm its “unity of purpose to provide the policy support necessary to keep economic growth strong,” saying order to public finances should be restored in the “medium term.”

Obama’s appeal “isn’t anything that goes against what we are doing,” Merkel told reporters yesterday. “If we don’t get onto a path of sustainable economic growth but have rather a growth bubble, then if the next crisis comes we won’t be able to pay for it.”
This conflict is going to become much fiercer if the economy contracts.

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