• Germany edition
 
Merkel slams US ahead of G20 summit
Photo: DPA

Merkel slams US ahead of G20 summit

Published: 10 Nov 2010 15:56 GMT+01:00
Updated: 10 Nov 2010 15:56 GMT+01:00

Before heading to meet fellow world leaders in Seoul, South Korea, Merkel warned that the recent decision by the US Federal Reserve to pump $600 billion to prop up America’s fragile economy could have unintended consequences.

"Nobody has an interest in creating new bubbles. Instead, we must see to it that growth in the global economy this year is more sustainable and enduring that we had a few years ago," Merkel told reporters.

Critics argue that the Fed's "quantitative easing" stimulus amounts to an effective dollar devaluation, and has the potential to trigger a 1930s-style trade war if other countries respond in kind.

With this in mind, Merkel also pressed her fellow leaders to avoid any form of protectionism, amid criticism that certain countries, notably China and Japan, are keeping their currencies artificially low.

"The biggest danger for sustainable growth is currently coming from protectionism in its different forms," she said, admitting discussions could be “tricky” at the G20 summit. "We are going to discuss this issue with the Americans in a spirit of partnership."

Merkel’s critique of US policy joins a broader German assault led by Finance Minister Wolfgang Schäuble and Economy Minister Rainer Brüderle. Both have recently disparaged Washington’s handling of its finances while rejecting US criticism of Germany’s exceptionally high trade surplus.

“We don’t have the slightest interest in conflict,” said Schäuble, who will accompany Merkel to Seoul. “We will do everything we can to help the United States of America in its difficult situation. But it’s not a one-way street.”

Brüderle was even less diplomatic. Speaking to weekly newspaper Die Zeit, he accused the United States of “an unacceptable return to planned economic thinking” once favoured by communist nations.

“It would be absurd to punish those countries that are internationally competitive and are contributing to the global economy’s recovery from the crisis,” he said, adding he was “confident” Germany could fend off unreasonable US demands at the G20.

Brüderle also slammed the growing tendency for nations to keep their currencies artificially low to boost their exports. He accused China, Japan, Brazil and the United States of “indirectly manipulating” foreign exchange markets to their economic advantage.

The Local/AFP/DPA/mry

The Local (news@thelocal.de)

Don't miss...X
Left Right

Your comments about this article

16:40 November 10, 2010 by William Thirteen
oh sweet irony, now Germany accuses the US of protectionism and resorting to central planning....
02:26 November 11, 2010 by cycle63
well, when you have a POS in the WH that is more left that anyone else in the world, this is exactly what to expect. 2012 cannot come soon enough!
05:42 November 11, 2010 by praymont
The other industrial nations have relied for too long on trade surpluses with the USA. Those surpluses can't last forever. Given the extent of suffering in the USA now, it's perfectly appropriate for the USA to add more stimulus, let its currency de-value, and hopefully start enjoying trade surpluses other nations.
08:48 November 11, 2010 by catjones
Looks like the German 'miracle' is about to end, along with high margins. Did Germany really think they could continue gloating while the U.S. languished? The American public is demanding an economic improvement and the Fed is responding the only way it can. Waiting for the Congress to do anything is a fool's mission regardless of party.
Today's headlines
Man shot in tax office dispute
DPA

Man shot in tax office dispute

A tax office worker in the Schleswig-Holstein town of Rendsburg died in hospital after being shot on Monday morning. READ  

Merkel details Iraq arms shipment to MPs
Angela Merkel addressing the Bundestag on Monday as her ministers look on. Photo: DPA

Merkel details Iraq arms shipment to MPs

UPDATE: Chancellor Angela Merkel addressed the Bundestag on Monday to explain her government's decision to send weapons to Iraqi Kurds fighting terrorist group Isis. READ  

Olympic visions compete in Berlin and Hamburg
Berlin and Hamburg mayors Klaus Wowereit and Olaf Scholz on Monday. Photos: DPA

Olympic visions compete in Berlin and Hamburg

Germany's capital and its gateway to the North Sea each released details of their Olympic bids on Monday as the race for the 2024 or 2028 summer games nominations picks up momentum. READ  

Vacationer killed by Baltic Sea bacteria
Photo: DPA

Vacationer killed by Baltic Sea bacteria

Six people were infected with a bacteria from the Caribbean which has made itself at home in the popular German vacation destination. One of them is now in a coma. READ  

UN applauds Germany's help to refugees
DPA

UN applauds Germany's help to refugees

UNHCR Commissioner Antonio Guterres is lauding Germany's role in accommodating the influx of refugees in Europe, while pointing at the imbalance of effort within the EU. The federal government has pledged to do more. READ  

Energy-sucking vacuums no longer welcome
Photo: DPA

Energy-sucking vacuums no longer welcome

Starting on Monday, vacuum cleaners drawing more than 1600 watts can no longer be brought into Germany. The ban is part of a an EU-wide environmental protection measure. READ  

Coalition horsetrading starts after Saxony vote
CDU leader Stanislav Tillich with SPD Martig Dulig. Photo: DPA

Coalition horsetrading starts after Saxony vote

Chancellor Angela Merkel's Christian Democratic (CDU) party is in search of a new partner after the expulsion of its former allies the Free Democrats (FDP) from the Saxon state parliament. READ  

Presented by Phorms Education
Bilingual education from nursery to graduation
Photo: Phorms Education

Bilingual education from nursery to graduation

A network of German based schools is changing how students learn languages by introducing English and Deutsch from day one, with the method yielding impressive academic results. The Local finds out more about Phorms Education. READ  

JobTalk Germany
'German bosses need to praise more'
More of this? Photo: Shutterstock

'German bosses need to praise more'

What do German bosses need to do to get more out of their staff? Frankfurt-based business consultant Justin Bariso has this advice. READ  

Train drivers take their turn to strike
A banner announcing a previous rail strike in June is displayed in a station. Photo: DPA

Train drivers take their turn to strike

A train drivers' union has warned of a nationwide strike to take place on Monday evening as it seeks leverage in negotiations with Deutsche Bahn. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Sponsored Article
Bilingual education from nursery to graduation at Phorms
Photo: Shutterstock
Gallery
Ten of the oddest things found by German border control
Photo: Gerkan, Marg and Partners/Tegel Projekt GmbH/J. Mayer
Berlin
How will Berlin look in five years' time?
Photo: DPA
Culture
Sprechen Sie Deutsch? 10 reasons why you should
Photo: DPA
Gallery
The best of Berlin's mayor Klaus Wowereit in 14 pictures
Photo: DPA
Politics
Germany sends burgers and sausages to Kurds
Photo: Matthias Kock
National
Tribes, ties and a movie: A German's Afghan life
Photo: DPA
Gallery
10 things to do before summer in Germany is really over
Photo: DPA
Gallery
The mysteries of Berlin's abandoned theme park
Photo: Europeana.de 1914 - 1918
Gallery
A German soldier's life behind WWI lines
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
National
Share news tips with The Local Germany
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,418
jobs available
Toytown Germany
Germany's English-speaking crowd