Chancellor Angela Merkel’s platform for Sept. 22 elections fails to address the most pressing economic policy areas facing Germany and risks sacrificing the country’s prosperity, business lobby groups said.
European governments should part- nationalize the region’s largest lenders to prevent potential bank failures, Michael Huether, the director of the Cologne- based economic institute IW said, Sueddeutsche Zeitung reported.
Wage increases for German workers should be limited to 3 percent this year to avoid the risk of causing an inflation spiral, Michael Huether , head of the IW economic institute, was quoted as saying by Boersen-Zeitung.
A German Finance Ministry official said that budget-cutting rules must allow for flexibility, opening a chink in Chancellor Angela Merkel’s austerity-first policy as the only course to rescue Europe from its debt crisis.
Michael Huether, head of Germany’s IW economic institute, said the European Union should help rescue Spain’s banks rather than forcing the entire country to seek a bailout, Die Welt reported, citing an interview.
Michael Huether, the German economist and head of the IW economic institute, said eurozone governments may have to force Greece to exit the common currency unless the country adheres to its austerity promises, Bild-Zeitung reported.
The euro region’s sovereign debt crisis will ease next year and the common currency will still be around in five years after leaders earlier this month agreed to have their budgets monitored more closely, Michael Huether, head of the business-sponsored IW economic institute, told WirtschaftsWoche magazine.