Thursday, November 8, 2012
Merkel's Economic Advisers Oppose Increases in Spending
Angela Merkel has proposed several programs that will increase government spending. According to this article, she did so to shore up support within her coalition prior the the coming elections. Her economic advisers were not pleased. Germany's economy is expected to grow less than 1% over the next couple of years. They want her to tighten the government's budget in response. Some economists believe that fiscal contraction across Europe is not the best way to shore up the budget. Slower growth will also lead to declining tax revenues.