CHANCELLOR MERKEL ADDRESSES PARLIAMENT AHEAD OF G20 SUMMIT

(14 Jun 2012) Germany's Chancellor Angela Merkel on Thursday reiterated her commitment to the euro, insisting repeatedly, "If the euro fails, Europe fails." Merkel's pledge came as the crisis in the 17 countries that use the euro started coming back to the boil, with Spain admitting it needs help to rescue its banks and voters in Greece deciding whether to back a party that could pull out of the single currency. All eyes are on economic powerhouse Germany to see what it will do to save Europe's union from collapse. Germany's chancellor said Europe's lingering sovereign debt crisis will likely dominate this weekend's summit of the world's 20 most important economies in Mexico. In an address to parliament before leaving for the gathering of world leaders, she warned that Europe's debt woes will overshadow all other topics, and much of the attention will be on Germany as Europe's biggest economy. "Yes Germany is strong. Germany is the motor and anchor for the European economy. And I say that Germany uses its strength not only for the good of the German people but also for the good of the European Union and the world economy." Merkel maintains that she will defend Germany's position on a European recovery; that a mix of fiscal tightening and reforms is the only way to overcome the crisis and to return to sustainable growth. It's certainly in Germany's economic interests to ensure the euro has a future. Of Germany's 276 (b) billion euro (346 billion US dollars) in exports in this year's first quarter, nearly 110 (b) billion euros went to other eurozone countries. The full 27-nation EU accounted for more than half of its exports. So Germany desperately needs a stable market close to home. It's also clear that Europe needs Germany: The nation's GDP of 2.6 (t) trillion euros is 30 percent larger than that of France, the second biggest eurozone economy, meaning Germany alone has the funds to bail out the struggling bloc. But Merkel also warned that Germany's strength is not infinite. "We also know that Germany's strength are limited. Therefore we have the responsibility as the strongest economy in Europe to assess our strength credibly." Financial officials from the G20 begin meeting Friday in Mexico's coastal resort of Los Cabos, and national leaders will start assembling two days later. Find out more about AP Archive: http://www.aparchive.com/HowWeWork Twitter:   / ap_archive   Facebook:   / aparchives   ​​ Instagram:   / apnews   You can license this story through AP Archive: http://www.aparchive.com/metadata/you...