“Chancellor Angela Merkel said that austerity in the euro area will claim victims as European leaders struggle to resolve the debt crisis, though the pain will be worth it to regain sustainable economic growth.
The German leader dismissed the notion that increasing debt is necessary to generate growth. She lauded European leaders for cutting budget deficits in half during the years of crisis, citing her championing of the bloc’s fiscal pact.
“We know that there will have to be victims from this in many countries,” Merkel told a forestry conference today in Berlin. “But I believe that in the long term we’ll have to have a growth strategy without always having to pile on debt.”
The German-led strategy of scaling back deficits as a response to the three-year-old debt crisis has come under criticism from other parts of the world because of recession and record unemployment in the 17-nation euro bloc…..”
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