German Chancellor Angela Merkel
said Wednesday that countries must "fulfill their obligations"
under the European Union's budget stability pact because the
economic crisis is not over.
"We are not yet at the point where we can say that the
crisis is behind us," Merkel said after the Italian government
warned Tuesday that it had revised forecasts in its economic
blueprint and said it will not balance the budget in structural
terms until 2017.
On Wednesday, France also said that it would not reduce its
budget deficit until 2017, two years later than forecast, and
that it would not intensify austerity measures to speed the
deficit-reduction process.
Merkel said that the credibility of the EU was at stake.
"Countries must fulfill their obligations for the welfare
of all," she said, reminding member states that the title of the
EU's Stability and Growth Pact was a reminder of the necessity
for sound and stable finances to encourage economic growth.
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