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Merkel Tells Obama Spending Cuts to Boost Economy, Not Put Brake on Growth
By Tony Czuczka - Jun 22, 2010

Chancellor Angela Merkel championed German export strength as “the right thing” for her country, spurning President Barack Obama’s call to boost private spending as both leaders prepare for Group of 20 talks.

Merkel, addressing a business audience in Berlin today, said she told Obama in a phone call that cutting government debt is “absolutely important for us,” exposing a second point of contention ahead of the June 26-27 G-20 summit in Canada.



From Fortune magazine: "President Obama wants to slow Europe's headlong rush to austerity but right now he looks like little more than a speed bump for the cutback crowd." "Obama has sought to use the upcoming meeting of the Group of 20 global finance ministers in Canada this weekend as a rallying cry for more fiscal stimulus."





German Unemployment Dips to 18-Year Low in OctoberGerman unemployment fell slightly in October, dropping to its lowest level in 18 years as the impact of persistently strong growth in Europe's top economy continued to filter through to the jobs market.


The number of jobless fell by 3,000 to a seasonally adjusted 3.153 million, figures from the Labor Office showed on Thursday, while the headline level dipped to 2.945 million, confirming figures announced a day earlier.

The headline reading fell below the 3 million mark — a key political threshold — for the first time since November 2008, to its lowest point since October 1992.

On an adjusted basis, the jobless rate held steady at 7.5 percent, while economists had forecast 7.4 percent.

Data on Europe's biggest economy over the past week has been bullish, signalling its unexpectedly strong recovery could hold up in the face of signs of fragility in the global economy.

Consumer morale remains at its highest level since May 2008 going into November on expectations for a further rebound, a survey by GfK market research group showed on Tuesday.

Business sentiment hit its highest level in 3-1/2 years in October and firms' expectations also improved, a survey showed last week, and the corporate outlook continued to improve on Thursday.

Deutsche Lufthansa said it expected business to remain strong into 2011 after demand for international premium class travel and cargo services improved in the third quarter.