Merkel No-Deficit Dogma Means No Stimulus for Germany

Germany is resisting stimulus even as it faces the threat of recession.

Some of the weakest data since the global financial crisis have stoked concern that Europe’s largest economy has shrunk for two consecutive quarters. That’s not enough for Chancellor Angela Merkel, who says the government won’t boost short-term spending to restore growth, just as Bundesbank President Jens Weidmann argues against the latest euro-area stimulus by the European Central Bank.