Merkel Vows Austerity Even as Growth Projection Cut

Chancellor Angela Merkel told lawmakers that Germany won’t raise public spending to stimulate the economy even after her government slashed growth forecasts for this year and next, a party official said.

Europe’s biggest economy will probably grow by 1.2 percent this year and by 1.3 percent in 2015, marking respective drops from 1.8 percent and 2.0 percent forecast in April, the Economy Ministry said today.