Lagarde called Berlin to change its policy
A charge "unusual". The Financial Times estimated that about Economy Minister Christine Lagarde, for a change in the economic policy of Germany, he reported on Monday, just break a "taboo" between the two countries . Christine Lagarde believes that Berlin should change its policy of reducing labor costs, which allows Germany to achieve a trade surplus, but that is not tenable: "I am not sure whether a model sustainable in the long term and for the whole group (euro area). It is clear that we need a better convergence.
Changes in labor costs between 1996 and 2009 has soared in Europe, except Germany.While labor costs have jumped on this period by 35% in France, 45% in Spain and 65% in Greece, they rose by 5% in Germany.
Christine Lagarde welcomes the good economic performance of Germany. But the Economy Minister said that Berlin would benefit from encouraging the development of demand on its domestic market. According to the Financial Times, she sees this as a salvation for indebted countries in Europe, which could well return to competitiveness and consolidate their public finances.
These statements may elicit a quick reaction at the meeting of finance ministers from the eurozone to be held on Monday to discuss the conditions for support to bring to Greece to help it cope with its debt of 300 billion 'euros.On this point, Christine Lagarde said that members of the euro zone must ensure the implementation of commitments of Greece in fiscal austerity before granting assistance, the form must comply with EU rules force. The Minister of Economy invited his counterparts to show "a little creativity and innovation" to describe the form of aid.
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