Germany rejects Rajoy request for stimulus measures

Economy Minister says that euro-zone crisis is due to “excessive” debt of member states

German Economy Minister Philipp Rösler on Wednesday rejected calls for extraordinary measures to boost growth in Germany.

In an interview with the Financial Times published on Wednesday, Spanish Prime Minister Mariano Rajoy called on Germany and other “creditor” euro-zone countries for measures to boost activity in the single-currency area.

Rösler was speaking a day after the German federal statistics office said the domestic economy shrank on a quarterly basis by 0.5 percent in the last three months of 2012 as the austerity drive in countries such as Spain, Portugal, Greece and Ireland reduced the appetite for German exports. The German Economy Ministry on Wednesday cut its growth forecast for this year to 0.4 percent from 1.0 percent. Annual growth in 2012 was 0.7 percent.

“There will be no stimulus packages financed by debt,” Rösler told a news conference in Berlin. The minister attributed the crisis to “excessive indebtedness,” which he said is being successfully remedied.

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