• Germany's news in English
 

Merkel and Cameron - fiscal pact not enough

Published: 07 Jun 2012 16:40 GMT+02:00

In a short news conference after talks in Berlin, Merkel said the pact, which aims to toughen budgetary discipline in the EU, was "necessary but not the only precondition" to stem more than two years of turbulence.

For his part, Cameron added that the fiscal pact, which non-euro Britain has not signed, was "important but not sufficient" to pull the eurozone out of its malaise.

Merkel said that looking further out, the eurozone need to pool sovereignty in areas other than tax and spending if such crises were to be prevented from happening again.

"When we look at the medium and longer term, we need more coherence, not just in terms of fiscal policy, but also in other areas ... (the fiscal pact) is a necessary step, but not sufficient," she added.

Twenty-five of the European Union's 27 member states have signed up to the fiscal pact.

Merkel added that she wanted to see "certain parameters" within the eurozone harmonised.

"For example, when one country spends nothing on research and other spends three percent of its gross domestic product; that cannot work in the long term," the chancellor said.

"The responsibility of being in a common currency brings other duties with it. This is shown in the fiscal pact but it does not call into question the togetherness of the whole EU 27," she insisted.

Speaking at a meeting of students earlier in the day, Merkel had reiterated that there was no one magic solution that would cure the eurozone's ailments.

"Calling for this one big bold stroke and then the euro crisis will be gone. This won't work," she insisted.

"These problems have piled up over many years and now it will take some while to render this system fit for the future. It's obviously in human nature to wish for this bold stroke but I don't think it will work," she added.

AFP/hc

The Local (news@thelocal.de)

Your comments about this article

17:15 June 7, 2012 by Englishted
Hot air and no action whats new.
09:58 June 8, 2012 by mos101392
Until Cameron throws away the pound and adopts the Euro. he really doesn't have a say in all of this. However, I give him cudos for having the guts to tell Merkal to do as he says and not as he does.

If the UK can keep their Pound and still call themselves European, then the Germans should bring back the DM and let the rest fend for themselves. There seems to be allot of anger towards Germany, another reason to bring back the DM. At least they would no longer have to carry Europe's burden while at the same time listen to all their anti German complaining.

Europe will never become a single country, and until that happens, a single currency will have it's problems. Europe is simply too diverse with languages and cultures.

There will always be the "slackers" and the "over achievers".
10:40 June 8, 2012 by McM
The Euro zone has a solvency problem and wether GB is in or out of the zone is sadly not relevant. Scapegoats are easy to find, considered solutions, not so easy.

A lot of smart money has long departed Euro zone member countries including Germany. London can assist and compliment as a Union member by encouraging the bankers there to participate but don't hold your breath, the A league investors are no longer playing in the euro zone. European countries are geographic partners not just currency partners and all regional members have an obligation to assist .

Whether or not the knee jerk reactionaries and free lunch lobbies win the day , there will still remain a fundamental issue with keeping the zone solvent. Luckily Germany and Briton still have some say in it .
16:01 June 8, 2012 by kyanfar
Unfortunately GB has always something to whinge about, especially in some matters that do not have to do anything with it. David Cameron says: "I wouldn't ask British taxpayers to stand behind the Greek or Spanish deposits. It is not our currency, so that would be inappropriate to do. http://www.huffingtonpost.co.uk/2012/06/07/david-cameron-british-taxpayers-will-not-rescue-greek-and-spanish-banks_n_1577937.html?ref=uk" However, on the other hand, he pushes for more Germany action over eurozone crisis: "http://www.guardian.co.uk/politics/2011/nov/08/david-cameron-pushes-for-more-german-action".

He knows better than anyone that GB's economy depends on the Eurozone's economy.

I would like to see what he would have said or say if UK was the one in the position of Greece is today?

Would he think that is inappropriate for Eurozone Taxpayers to help GB?

We should leave it to the future when it really happens.
20:18 June 8, 2012 by agc55
I think Cameron needs to be more constructive and stop playing to the voters in the UK. That said I do think the UK PM has the right to comment. If the person next door's house in on fire and it threatens your home you would not expect him to say its non of your business let it burn and it may also burn down your house. But maybe Cameron should help put the fire out instead of having a BBQ.
22:00 June 8, 2012 by avatar009
hi,

The realty iz the EU, must deal the corruption in the Southern Area. They must figure out the yearly GDP out put. The problem isnt Cameron is Global financial crisis start the credit crunch. It all comes to corruption and EU dont like to talk about that.
06:14 June 9, 2012 by agc55
Yes I agree avatar009 that this is at the heart of the problem, but without apportioning blame the rush to expand the Euro Zone was blind to these risks. I wouldn't totally agree the credit crunch started the crisis but it did expose a time bomb ticking away, a time bomb which would have exploded sooner or later. In times of crisis national interests will always take priority in democratic nations and that is the Achilles heal of the EU. The even greater danger is that if governments don't listen to the people they are elected out and this opens the door to the extremists and fools. I don't see an answer but we need to work together.
11:11 June 10, 2012 by blackboot11
In other news as Merkel and her ministers voted themselves a pay raise....

"Seeking to set the example ahead of the parliamentary vote, Hollande and his ministers agreed in May to cut their salaries by 30 percent." today on Reuters.com
Today's headlines
Jobtalk Germany
Are robots about to take away 18 million jobs?
Robots are set to wipe out large sectors of the work force. Photo:DPA

Are robots about to take away 18 million jobs?

A study commissioned by ING-Diba claims that 59 percent of Germany's work force could be replaced by machines and software in the coming decades. The impact on German society is set to be radical. READ  

Merkel defends BND against criticism
Angela Merkel. Photo: DPA

Merkel defends BND against criticism

Chancellor Angela Merkel defended the German intelligence agency (BND) on Monday amid growing criticism of her knowledge of the agency's activities from within her own government. READ  

Germany falls behind neighbours in hourly pay
Photo: DPA

Germany falls behind neighbours in hourly pay

The average hourly private sector pay in Germany increased slightly between 2013 and 2014, but the rate still lagged behind that in most of Germany’s neighbour states, according to data released on Monday. READ  

Germany braces for longest-ever rail strike
Photo: DPA

Germany braces for longest-ever rail strike

German train drivers found themselves under fire from industry and the government on Monday after announcing their longest walkout in the history of rail operator Deutsche Bahn. READ  

€15m of cocaine found in Aldi banana boxes
A stash of cocaine found in an Aldi banana box last year. Police discovered more hidden narcotics in banana boxes on Monday. Photo: DPA.

€15m of cocaine found in Aldi banana boxes

More than 300 kilograms of cocaine worth €15 million were discovered in Berlin-area Aldi supermarkets, hidden in cases of bananas, police reported on Monday. READ  

Institute to end 'monkey torture' programme
Demonstrators against the Max Planck Institute. Photo: DPA

Institute to end 'monkey torture' programme

After graphic pictures emerged of distressed and unconscious monkeys bleeding from the head at the Max Planck Institute in Tübingen, the world-renowned research centre announced on Sunday that it will close its primate research programme. READ  

A third of parents OK with smacking children

A third of parents OK with smacking children

About one third of German parents think an 'Ohrfeige', or smack across the head, is an appropriate part of child-rearing, according to an RTL survey released on Sunday. READ  

New case of Ebola suspected in Germany
A man suspected of having Ebola has been brought to the Uni Klinik in Düsseldorf. Photo: DPA.

New case of Ebola suspected in Germany

A man in Bochum was taken to hospital on Sunday evening under tight security controls after it was suspected that he was infected with the Ebola virus. READ  

Putin's biker gang cross border into Germany
The Night Wolves have reached Germany. Photo: DPA

Putin's biker gang cross border into Germany

Ten pro-Kremlin Russian bikers, part of a larger group on a controversial World War II victory ride through Europe, reached the German border late Sunday, the Bavarian authorities said. READ  

Merkel joins Holocaust survivors to mark Dachau liberation
Merkel laying a wreath at Dachau. Photo: DPA

Merkel joins Holocaust survivors to mark Dachau liberation

German Chancellor Angela Merkel joined survivors of the former Nazi concentration camp at Dachau on Sunday for a solemn ceremony to mark 70 years since it was liberated by US forces. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Five ways Germany falls short on gay rights
Travel
Giant tortoise found riding Munich rail
National
FCK CPS? A-OK with court
National
Germany's 'other genocide' in Africa
Politics
Opinion: Brexit's dangers for Germany
National
Minister shows off top Denglisch
Features
Off to Norway at 18 km/hour
National
Arms firms get a 'must do better' mark on ethics
Features
Smart kids all want to work for BMW
Sport
Bayern's anticlimactic 25th Bundesliga win
Gallery
German beer day: take the tour
Gallery
The smileys Germans love to text
National
Expats face Monday deadline to register to vote for UK election
Politics
A Greek learning politics in Germany
National
Germany's favourite baby names of 2014
National
Germany's 'very poor' lobbying record
Features
The battle of the "Gates of Berlin"
Politics
Merkel's 15 years at the top of German politics
National
VIDEO: Mario Draghi suffers anti-ECB confetti attack
Travel
Lowest of the low: how woman exploited Germanwings crash
Sport
Football and the €30,000 firework
Technology
Why scientists oppose killer robots
Features
Spice up asparagus season with The Local's serving suggestions
Technology
Electrifying 'Ostalgia'
National
Which city is Germany's worst for drivers?
National
Germanwings co-pilot 'searched suicide info'
National
'Cannibal cop' gets 8 years
Shutterstock
Sponsored Article
10 things you didn’t know about Zagreb (and why you should go)
National
Freed after 25 years on death row
National
Cologne Cathedral returns from space
Can the 'nightmare' of a pilot downing a plane be prevented?
Pupils mourn lost classmates
Sponsored Article
What expat parents should ask before choosing a school
National
LIVE: Co-pilot suspected of crashing plane
Is your workload 'out of control'? You're not alone...
Features
Paddy's Day, Berlin style
National
Why east Germans are happy to get it on on camera
National
What would you do with a 250-year-old pretzel?
Features
Just why is the German flag Schwarz, Rot, Gold?
Business & Money
Getting German workers and bosses thinking positive
National
Uplifting thoughts to get you through the last week of winter
National
Who wants the Olympics more - Hamburg or Berlin?
National
Last-minute drama of Germany's Eurovision 2015 entry
National
German photographer takes world's top prize
Features
Meet the woman getting Germans to drink more – and better – beer
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

7,160
jobs available
Toytown Germany
Germany's English-speaking crowd
?>