BERLIN — German Chancellor Angela Merkel’s government rebuffed U.S. calls to focus on bolstering growth over debt reduction, setting a course for conflict at the Group of 20 summit in Canada this week.
“Nobody can seriously dispute that excessive public debts, not only in Europe, are one of the main causes of this crisis,” Finance Minister Wolfgang Schaeuble said.
“That’s why they have to be reduced.”
Germany is holding to G-20 commitments on exit strategies from fiscal stimulus and “not violating international requirements for a coordinated strategy for sustainable growth,” Schaeuble said. “We will face up to the international debate, and I think we can do that with a great deal of self-confidence.”
Five days before G-20 leaders meet in Toronto, the economic-policy divide between Europe and the U.S. is hardening.
German Economy Minister Rainer Bruederle, at a separate news conference earlier Monday, said the U.S. must join Europe in “urgently” cutting spending.
Bloomberg News
