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Germany won't lecture EU economies: new finance minister

AFP  |  Frankfurt Am Main 

will no longer lecture other European countries over their economies, the next minister of the eurozone's richest nation said today.

Olaf Scholz, of the (SDP) that this week struck a deal to reform Germany's so-called grand coalition government with Angela Merkel, said "doesn't need to dictate to other European states how they run themselves".

"Mistakes have certainly been made in the past," Scholz told Der Speigel magazine, an apparent reference to the policy of his predecessor Wolfgang Schauble, who oversaw Germany's oft-criticised massive trade surplus.

Germany's trading partners and international institutions like the regularly urge to spend and invest more to push up demand and indirectly boost other economies.

German officials, however, say the trade surplus reflects the strength of the "made in Germany" brand and insist there is little they can do to influence the spending of companies and individuals.

Hardliner Schauble became known in many nations for his tough stance towards as it struggled to stay in the euro, and he is unlikely to be missed by the many debt- mired countries of

The centre-left SDP clinched a coalition deal with Merkel's CDU/CSU that gave it six ministries as well as a string of policy concessions following a disappointing showing for both parties in elections last September.

The deal includes 46 billion euros ($56 billion) for economic and social development, and there is hope among some economists that Scholz could loosen the purse strings of Europe's economic giant.

"The Social democrats want solid finances," he said, adding that additional investment "would depend on additional growth and the taxes generated from that.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, February 10 2018. 18:20 IST
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