Merkel Warns of Tough Times Ahead
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German Chancellor Angela Merkel has warned citizens to be prepared for a tough year ahead and urged patience as the eurozone sovereign debt crisis extends into its fourth year.
In her New Year message, the Chancellor warned that 2013 will be “even more difficult” even if the reform measures designed to address the roots of European sovereign debt crisis are beginning to bear fruit.
German Chancellor Angela Merkel has warned citizens to be prepared for a tough year ahead and urged patience as the eurozone sovereign debt crisis extends into its fourth year.
In her New Year message, the Chancellor warned that 2013 will be “even more difficult” even if the reform measures designed to address the roots of European sovereign debt crisis are beginning to bear fruit.
“The reforms that we’ve introduced are beginning to have an impact,” she said. “Nevertheless we need to have further continued patience. The crisis is far from over.”
At the same time, Merkel said greater international efforts to “monitor the financial markets” are needed to prevent the “irresponsibility” that began when the US subprime mortgage bubble burst.
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However, she refrained from linking German prosperity to a prosperous European Union.
She said:
[quote] For our prosperity and our solidarity we need to strike the right balance. The European sovereign debt crisis shows how important this balance is. [/quote]
Germany has been the paymaster of the eurozone crisis, paying for and heavily subsidising fiscal improprieties and past extravagances of neighbouring EU states, much to the chagrin of many German taxpayers.
But while Germans remain wary of the eurozone bailout efforts, they give Merkel, a strong advocate for fiscal austerity, high marks for what they consider to be her judicious handling of the crisis.
Domestically, Merkel pledged to invest more in education and research, build Germany into one of the most modern energy producers in the world, prepare the country for demographic change and bring public finances into order.
She added:
[quote] If we can do something that others cannot, we preserve and create prosperity. [/quote]
Merkel, who is seeking a third term in September, rightly pointed out that unemployment in Germany had fallen to its lowest level since reunification in 1990 while the number of people employed had also risen to record highs.
“That means that many hundreds of thousands of families have a secure future,” said Merkel. “And that means that a lot of young people have the security of training and jobs and thus will get off to a good start in their careers.”
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