Monday, May 7, 2012

Germany rules out reworking EU's 'fiskalpakt'

Germany has ruled out reworking the European Union's "fiskalpakt" despite calls to do so by Francois Hollande, France's president-elect.

"It is not possible to renegotiate the fiscal pact," government spokesman Steffen Seibert said during a news conference.

He noted that 25 of the 27 EU member states had already signed the accord imposing strict budgetary discipline in March after major wrangling.

Mr Hollande has called for a shift in strategy toward more growth-oriented measures including more public spending.

But Mr Seibert said Angela Merkel would not accept "deficit spending" to feed economic expansion, and believed in "growth through structural reforms" such as reducing the cost of job creation as pursued by Germany over the last decade. Read More