• Germany's news in English

Gabriel backs Obama’s economic policy attack

DDP/DPA/The Local · 25 Jun 2010, 11:54

Published: 25 Jun 2010 11:54 GMT+02:00

Facebook Twitter Google+ reddit

“We have to talk about investment and not only austerity packages,” Gabriel told the Financial Times Deutschland. “If the entire world acted like Ms. Merkel, and only cut spending, who would actually be buying the products of an export champion like Germany?”

Earlier this week, US President Barack Obama wrote to European leaders to express concern “about weak private sector demand and continued heavy reliance on exports” – a clear reference to Europe’s largest economy Germany.

But a defiant Merkel said before heading to the G8 and G20 summits of industrial and developing nations in Toronto this weekend that her government was sticking to its €80-billion austerity package. She said she would relay Berlin’s standpoint in her talks to world leaders in Canada.

Gabriel, however, said Germany could not expect to recover from the global economic crisis at the expense of other nations. In particular, he said the government needed to do more to spark great domestic demand by ensuring a minimum wage and better pay packages for workers.

“The crisis will only be over when we end the status quo,” Gabriel said. “The chancellor is simply hoping improved growth can cover up the fact that she’s no longer governing.”

The SPD leader also slammed Merkel for not better coordinating German demands for greater regulation of international financial markets with Berlin’s partners ahead of the summit.

But German Finance Minister Wolfgang Schäuble on Friday rejected US criticism of Berlin’s budgetary consolidation efforts.

“We have to responsibly reduce deficits that are too high without endangering growth – Europeans are completely united on this,” he told public broadcaster RBB. “Solid fiscal policy and pursuing growth and job creation are not contradictory in Germany.”

Story continues below…

Schäuble also pointed out that the United States could hope to reduce its national debt with its growing population through economic expansion, but shrinking Germany could not.

He reiterated Berlin’s intention to push through a bank levy to help pay for the cost of last year’s unprecedented financial crisis – even only in Europe if there was no consensus among G20 members.

The leaders of the G8 industrial nations were to meet on Friday before they are joined on Saturday with the heads of the world’s top developing nations under the auspices of the G20.

DDP/DPA/The Local (news@thelocal.de)

Facebook Twitter Google+ reddit

Your comments about this article

13:43 June 25, 2010 by Major B
Oops. Waiting for the far right to swoop down and find a way to citicize Obama out of this. Of course the first "tried and true" method is to call Gabriel a commie leftist. After a little more name calling they will call him a pothead. (Oh no, none of the far right baby boomers now in their early 60's Ever smoked a Mary Jane) Wonder what their position is on the British/French/German bank tax. You all praising Merkel over that?
15:09 June 25, 2010 by Beachrider
This is an important issue for German citizens. In the early 1990s, Japan decided to avoid the risks and costs of continued economic expansion. For this and other reasons, the Japanese have been on a prolonged economic doldrum.

Japan has certainly cleaned their international books with this process. The problem is that other parts of 'being Japanese' have stagnated, too. Japan has been facing a brain-drain as Korea, China, Vietnam and others have used their former model to become prosperous.

This could happen to Germany. This isn't the do-all or end-all for such a change, but it could be a bellweather issue. You can be economically conservative at one time, but years of similar policies could lead to the Japanese situation.
17:22 June 25, 2010 by liorabs
Obama can criticize to his heart` content.


So Obama cares about Global Economy?

What about a Global Gaia Disaster?

No, No. It is always about money, and always the weak suffer.

Germany has good economy and should not suffer for the grasshopper [and the ant] policy of spending and dancing.
11:05 June 27, 2010 by JohnnesKönig
If that is what she thinks then she is an IDIOT! "Obama¦#39;s economic policy" is to destroy the US economy by robbing it! The Chicago way...
Today's headlines
Creepy clown scare spreads to Germany
Two of the clowns were apparently equipped with chainsaws. Photo: Pedro Pardo / AFP file picture

Police said Friday five incidents involving so-called scary clowns had occurred in two north German town, including one assailant who hit a man with a baseball bat, amid fears that Halloween could spark a rash of similar attacks.

Student fined for spying on women via their webcams
Photo: DPA

Student from Munich fined €1,000 for spying on 32 different computers, using their webcams to take photographs, or record their keyboard history.

This is how much startup geeks earn in Germany
Photo: DPA

A comprehensive new survey of 143 startup founders shows how much you are likely to be earning at a German startup, from entry level all the way up to sitting on the board.

Man dies after beating for peeing near Freiburg church
The Johannes Church in Freiburg. Photo Jörgens Mi/Wikipedia

A middle-aged man from southern Germany has died after being attacked by a group of men who took umbrage with the fact he was urinating in the vicinity of a church.

The Local List
Seven German celebrities with uncanny doppelgängers
Former Berlin mayor Klaus Wowereit and actor Alec Baldwin. Photo: DPA; Gage Skidmore, Wikimedia Commons

Check out these seven look-a-likes of well known German figures - we admit that some are more tenuous than others...

Israel seeks to buy three new German submarines: report
A Dolphin class submarine. Photo: DPA

Israel is seeking to buy three more advanced submarines from Germany at a combined price of €1.2 billion, an Israeli newspaper reported Friday.

Here’s where people live the longest in Germany
Photo: DPA

Germans down south seem to know the secret to a long life.

More Germans identify as LGBT than in rest of Europe
Photo: DPA

The percentage of the German population which identifies as lesbian, gay, bisexual or transgender is higher than anywhere else in Europe, according to a new study.

'Reichsbürger' pair attack police in Saxony-Anhalt
File photo: DPA.

A "Reichsbürger" and his wife attacked police officers on Thursday, just a day after another Reichsbürger fatally shot an officer in Bavaria.

Five things not to miss at the Frankfurt Book Fair
Photo: DPA

From consulting a book doctor to immersing yourself in an author's world with the help of virtual reality, here are five things not to miss at this week's Frankfurt Book Fair, the world's largest publishing event.

Sponsored Article
How to vote absentee from abroad in the US elections
10 things you never knew about socialist East Germany
Sponsored Article
Last chance to vote absentee in the US elections
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
Sponsored Article
How to vote absentee from abroad in the US elections
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
Eleven famous Germans with surnames that'll make your sides split
The best ways to get a visa as an American in Germany
jobs available
Toytown Germany
Germany's English-speaking crowd