BRUSSELS (Reuters) – In the latest shift away from the austerity of the euro zone crisis, European Union leaders signalled at a summit that they were ready to give member states extra time to consolidate their budgets as long as they pressed ahead with economic reforms.
Under pressure from Italian Prime Minister Matteo Renzi, the leaders adopted a text which pledged to make “best use” of the flexibility built into the bloc’s fiscal rule book – the so-called Stability and Growth Pact.
BERLIN (Reuters) – Germany’s Angela Merkel signaled her readiness on Wednesday to give EU states more flexibility within current budget rules to promote growth and job creation, but made clear she will push her choice of European Commission chief over British objections.
The chancellor appeared to come down clearly on the side of a more lenient interpretation of the European Union’s Stability and Growth Pact to help countries like Italy and France balance the push for reform with the need to reduce high unemployment.
BERLIN (Reuters) – German Finance Minister Wolfgang Schaeuble warned on Thursday in the clearest terms yet about the risks of loose monetary policy for Europe’s largest economy, saying low interest rates were already spawning “dangerous” rises in domestic property prices.
Schaeuble has long warned about the threat of speculative bubbles forming as a result of excess liquidity, but his comments at a news conference with visiting U.S. Treasury Secretary Jack Lew went beyond his usual line that low rates must correct higher over time.
BERLIN, June 15 (Reuters) – The Alternative for Germany
(AfD) failed to make as big a splash in European elections last
month as its eurosceptic counterparts in France and Britain. But
that may be about to change.
Less than a month after the vote, the party formed last year
by a group of renegade academics is on track to establish itself
as a permanent force in German politics and a long-term headache
for Chancellor Angela Merkel and her Christian Democrats (CDU).