More stimulus wrong answer to crisis: Merkel
German Chancellor Angela Merkel hit back Tuesday at those, including the United States, urging Europe to introduce new economic stimulus packages to boost demand and spend its way out of the crisis.
Ahead of a hotly-anticipated meeting with Greek Prime Minister George Papandreou, she also pledged German support for his efforts to restore market confidence in his debt-wracked country.
"We need to combine economic growth with solid public finances ... we are not in favour of new stimulus programmes," the chancellor told business leaders here. "The idea that you need to boost growth by taking on ever greater debt is the wrong idea. I am deeply convinced of that."
US officials have repeatedly called on European leaders to introduce further stimulus into their slow-growing economies in a bid to tame a crisis that President Barack Obama said Monday is "scaring the world."
Later at the same conference, Germany's economy minister and vice-chancellor took aim at those calling for faster action.
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