Brussels, 06/11/2013 (Agence Europe) - The European Commission says that Germany could do more to support the green shoots of growth slowly emerging in the eurozone economy.
On Tuesday 5 November, Euro Commissioner Olli Rehn said, when unveiling the European Commission's autumn economic forecasts (see EUROPE 10957), that the European summit's recommendations for Germany remain valid. In reference to the current talks to set up a coalition government in the country, Germany should act in three areas: - creating the conditions for a sustainable rise in pay by lowering taxes on low incomes; - boosting domestic demand by greater investment in infrastructure; - boosting competition in services. The Commissioner said that a politically neutral debate on the German current account surpluses (which have been at an average of over 6% since 2007) was needed.
Speaking in Frankfurt that day, the president of the European Commission, José Manuel Durão Barroso, said that the way it is today, the European single market allows Germany to profit from its competitive lead in technology and industry and Germany could do more to allow the others to showcase their strengths through obstacle-free access to the services market and pay that is a better reflection of German productivity. He stressed the need to have in Europe a Germany that leaves no doubts about its commitment to European integration and banking union. (MB/transl.fl)