Split widens over Europe recovery plan

Article reports that differences were widening in early December 2008 over the European Commission €200bn economic recovery plan of the 26 November 2008, with France and the UK eager to see a big, co-ordinated stimulus package but Germany more critical of such reflationary measures.

German Chancellor Angela Merkel told a CDU party convention that her government would not take part in a competition to find ways to spend billions of euros to boost the flagging economy.

ESO: Background information: Brussels proposes €200bn stimulus / EU’s stimulus plan met with doubts http://www.europeansources.info/record/brussels-proposes-e200bn-stimulus-eus-stimulus-plan-met-with-doubts/

ESO: Background information: Merkel sees danger in 'cheap money' http://www.europeansources.info/record/merkel-sees-danger-in-cheap-money/

ESO: Background information: German complacency poses a serious threat http://www.europeansources.info/record/german-complacency-poses-a-serious-threat/

BBC News, 1.12.08: Merkel defies calls for tax cuts http://news.bbc.co.uk/1/hi/business/7758586.stm

Deutsche Welle, 1.12.08: Merkel Promotes Measured Response to Economic Crisis http://www.dw-world.de/dw/article/0,2144,3839946,00.html

Deutsche Welle, 2.12.08: Euro-Zone Leaders Agree Tax Cuts Not a Panacea http://www.dw-world.de/dw/article/0,2144,3841522,00.html

Deutsche Welle, 1.12.08: Steinbrueck: Germany Doing Enough for EU in Recession http://www.dw-world.de/dw/article/0,2144,3840895,00.html

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