Monday, May 7, 2012

Germany says renegotiating EU pact 'not possible' - Yahoo! News Canada

REPORT: The German government on Monday ruled out reworking the European Union's fiscal pact despite calls to do so by French president-elect Francois Hollande.

"It is not possible to renegotiate the fiscal pact," government spokesman Steffen Seibert told a regular news conference.

He noted that 25 of the 27 EU member states had already signed the accord imposing strict budgetary discipline in March after major wrangling.

Hollande has called for a shift in strategy toward more growth-oriented measures including more public spending.

But Seibert said Merkel would not accept "deficit spending" to feed economic expansion, and believed in "growth through structural reforms" such as reducing the cost of job creation as pursued by Germany over the last decade.

READ REPORT HERE

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