Merkel Rejects Stimulus Packages for Growth, Abendblatt Reports

German Chancellor Angela Merkel rejected the introduction of stimulus packages to create economic growth in Europe, Hamburger Abendblatt reported in a preview of an article that will run tomorrow, citing Merkel.

It is “important that we break with the idea that growth always costs a lot of money and must be the result of expensive stimulus programs,” Merkel said in answer to questions posed by Abendblatt. She instead proposed programs that need “political courage and creativity rather than billions of euros,” the newspaper reported.

Europe must implement structural reforms that eliminate growth obstacles and improve competition and should focus on education, research, a sensible salary development and the opening up of job markets to achieve sustainable growth, Abendblatt cited Merkel as saying. The way out of Europe’s crisis rests on two pillars -- solid finances and measures for growth and employment, the German chancellor said.

Germany is willing to strengthen the European Investment Bank to help it provide more support, Merkel told Abendblatt.

To contact the reporter on this story: Niklas Magnusson in Hamburg at nmagnusson1@bloomberg.net

To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net

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