Merkel: Germany Should Not Support the Economy Too Much

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If Germany pledges too much financial aid to companies to mitigate the consequences of the corona crisis, other European countries like Spain and Italy will be able to point to the country and say Germany has enough money.

 

That is what German Chancellor Angela Merkel said in a meeting with the top of the Christian Democratic CDU. Reuters news agency learned that from participants in the conversation.

There is a lot of fuss within the European Union about the best way to support affected economies.

A dichotomy has arisen between rich countries such as Germany, the Netherlands and Austria on the one hand and Italy and Spain on the other.

Italy, in particular, is strongly committed to joint government bonds, known as Eurobonds, whereby all countries in the Eurozone jointly guarantee. That is cheaper for the southern European countries, but more expensive for the northern European.

Merkel repeated in the conversation with the CDU summit once again that in her opinion Eurobonds are the wrong way.

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