Was Merkel right/wrong?

[applecorped]

http://www.timesonline.co.uk/tol/news/politics/G20/article5993184.ece

"Angela Merkel, the German chancellor, last night led the assault on the prime minister’s “global new deal” for a $2 trillion-plus fiscal stimulus to end the recession.

I will not let anyone tell me that we must spend more money,” she said.
The Spanish finance minister, Pedro Solbes, also dismissed new cash being pledged at Thursday’s London summit.


Merkel’s criticism drew an angry response from Labour MPs. Denis MacShane, the former Europe minister, said: “Who does Mrs Merkel think is going to buy Mercedes and BMWs if she . . . says putting demand into the economy is a bad thing?” Another Labour MP said: “One has to ask who had something to gain from the leak of the communiqué. This feels like a dirty trick.”

 

[Puppycow]

Not just Gordon Brown, China too has called for countries to spend more on stimulus.

But, I think the decision on how much to spend in each country should be left up to each country to determine for itself. So, I'm fine with Merkel deciding how much for Germany to spend without worrying too much about how much other countries spend.

 

[Texas]

Not just Gordon Brown, China too has called for countries to spend more on stimulus.

But, I think the decision on how much to spend in each country should be left up to each country to determine for itself. So, I'm fine with Merkel deciding how much for Germany to spend without worrying too much about how much other countries spend.

It isn't just Merkel. France is closing the piggy bank too and since Germany and France are the big dogs in the EU and the fact that the EU does not allow deficits above, I believe, 3%, this is one matter that will probably not be settled this week.