16 Apr 2013

Merkel wary of further stimulus consequences

11:33 am on 16 April 2013

Chancellor Angela Merkel says Germany does not have the economic strength to launch another stimulus package without the risk of losing market confidence.

Germany, Europe's largest economy, boosted its domestic economy in 2009 with large-scale spending.

In the debate about how to help eurozone countries hit by high deficits, debt and recession, Ms Merkel has long stressed the need for structural reforms and cost-cutting to rebalance public finances.

Critics especially in southern Europe and France have said that the fiscal discipline approach stifles growth and adds to the economic pain, calling instead for greater stimulus measures that would revitalise demand.