German Chancellor Angela Merkel said throwing too much money into reviving global economic growth would make the recovery unsustainable, in comments published yesterday.
Merkel snubbed calls to spend more public money in Germany as part of a coordinated international stimulus effort, in an interview with the Financial Times newspaper.
She told the British business daily that the business of putting the global economy back in order would not be finished at Thursday’s G20 summit in east London.
“This crisis did not come about because we issued too little money but because we created economic growth with too much money and it was not sustainable growth,” Merkel said. “If we want to learn from that, the answer is not to repeat the mistakes of the past.”
She also warned against inflated expectations from next week’s gathering of top world leaders at the ExCeL exhibition center.
“We are talking about building a new global financial market architecture and we will not be able to finish this in London. We will naturally not solve the economic crisis either, and we won’t solve the issue of trade. We will definitely need to meet again,” she said.
The chancellor was skeptical about moves for looser monetary policies and bigger public deficits as a way to battle the downturn.
Merkel said she would “expect to see a return to sustainable fiscal policies after the crisis,” saying “states cannot borrow forever.”
She added: “We must look at the causes of this crisis. It happened because we were living beyond our means ... governments encouraged risk-taking in order to boost growth. We cannot repeat this mistake. We must anchor growth on firmer ground.”
“We were spending too much to create growth that was not sustainable. It isn’t just that the banks took over too many risks. Governments allowed them to do so by neglecting to set the necessary [financial market] rules and, for instance in the US, by increasing the money supply too much,” she said.
Playing down the notion of a rift between Europe and Washington, she praised US President Barack Obama for being ready to reform financial markets.
“We are coming together to make joint decisions, not to compete against each other,” Merkel said.
“We all want the same thing: to put the world economy back on its feet as fast as possible and to prevent such a crisis from happening again.”
German Chancellor Angela Merkel said throwing too much money into reviving global economic growth would make the recovery unsustainable, in comments published yesterday.
Merkel snubbed calls to spend more public money in Germany as part of a coordinated international stimulus effort, in an interview with the Financial Times newspaper.
She told the British business daily that the business of putting the global economy back in order would not be finished at Thursday’s G20 summit in east London.
“This crisis did not come about because we issued too little money but because we created economic growth with too much money and it was not sustainable growth,” Merkel said. “If we want to learn from that, the answer is not to repeat the mistakes of the past.”
She also warned against inflated expectations from next week’s gathering of top world leaders at the ExCeL exhibition center.
“We are talking about building a new global financial market architecture and we will not be able to finish this in London. We will naturally not solve the economic crisis either, and we won’t solve the issue of trade. We will definitely need to meet again,” she said.
The chancellor was skeptical about moves for looser monetary policies and bigger public deficits as a way to battle the downturn.
Merkel said she would “expect to see a return to sustainable fiscal policies after the crisis,” saying “states cannot borrow forever.”
She added: “We must look at the causes of this crisis. It happened because we were living beyond our means ... governments encouraged risk-taking in order to boost growth. We cannot repeat this mistake. We must anchor growth on firmer ground.”
“We were spending too much to create growth that was not sustainable. It isn’t just that the banks took over too many risks. Governments allowed them to do so by neglecting to set the necessary [financial market] rules and, for instance in the US, by increasing the money supply too much,” she said.
Playing down the notion of a rift between Europe and Washington, she praised US President Barack Obama for being ready to reform financial markets.
“We are coming together to make joint decisions, not to compete against each other,” Merkel said.
“We all want the same thing: to put the world economy back on its feet as fast as possible and to prevent such a crisis from happening again.”
Also See: Brown, Bachelet call for IMF reform
Also See: China seeks G20 currency debate on dollar concerns
Archeologists in Peru on Thursday said they found the 5,000-year-old remains of a noblewoman at the sacred city of Caral, revealing the important role played by women in the oldest center of civilization in the Americas. “What has been discovered corresponds to a woman who apparently had elevated status, an elite woman,” archeologist David Palomino said. The mummy was found in Aspero, a sacred site within the city of Caral that was a garbage dump for more than 30 years until becoming an archeological site in the 1990s. Palomino said the carefully preserved remains, dating to 3,000BC, contained skin, part of the
‘WATER WARFARE’: A Pakistani official called India’s suspension of a 65-year-old treaty on the sharing of waters from the Indus River ‘a cowardly, illegal move’ Pakistan yesterday canceled visas for Indian nationals, closed its airspace for all Indian-owned or operated airlines, and suspended all trade with India, including to and from any third country. The retaliatory measures follow India’s decision to suspend visas for Pakistani nationals in the aftermath of a deadly attack by shooters in Kashmir that killed 26 people, mostly tourists. The rare attack on civilians shocked and outraged India and prompted calls for action against their country’s archenemy, Pakistan. New Delhi did not publicly produce evidence connecting the attack to its neighbor, but said it had “cross-border” links to Pakistan. Pakistan denied any connection to
TRUMP EFFECT: The win capped one of the most dramatic turnarounds in Canadian political history after the Conservatives had led the Liberals by more than 20 points Canadian Prime Minister Mark Carney yesterday pledged to win US President Donald Trump’s trade war after winning Canada’s election and leading his Liberal Party to another term in power. Following a campaign dominated by Trump’s tariffs and annexation threats, Carney promised to chart “a new path forward” in a world “fundamentally changed” by a US that is newly hostile to free trade. “We are over the shock of the American betrayal, but we should never forget the lessons,” said Carney, who led the central banks of Canada and the UK before entering politics earlier this year. “We will win this trade war and
Armed with 4,000 eggs and a truckload of sugar and cream, French pastry chefs on Wednesday completed a 121.8m-long strawberry cake that they have claimed is the world’s longest ever made. Youssef El Gatou brought together 20 chefs to make the 1.2 tonne masterpiece that took a week to complete and was set out on tables in an ice rink in the Paris suburb town of Argenteuil for residents to inspect. The effort overtook a 100.48m-long strawberry cake made in the Italian town of San Mauro Torinese in 2019. El Gatou’s cake also used 350kg of strawberries, 150kg of sugar and 415kg of