Date: Thursday 14 Jun 2012
German Chancellor Angela Merkel has restated her objection to the idea of Eurozone bonds after conceding that the European debt crisis will dominate the G20 summit next week.
In a speech to the Bundestag, Angela Merkel assured members of the lower house of parliament that the debt crisis “will overshadow all other topics” and that all eyes would be on Germany as Europe’s largest economy.
The German leader maintained her commitment to the euro while at the same time continuing to insist on the need to implement fiscal responsibility. She also repeated that eurobonds would only be counterproductive. “We must all resist the temptation to finance growth again through new debt,” she said.
Merkel also wasn’t shy about placing blame. She critiqued the European Banking Authority saying that the “stress tests have been an utter failure.” As far as the crisis in Spain, she said that it was a consequence of an “irresponsible decade”. Nonetheless, she stated that Madrid has both Germany’s and Europe’s backing and added that the Spanish government is “making brave decisions”.
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