Merkel addresses conference of leading economists and politicians
(17 Nov 2011) 1. German Chancellor, Angela Merkel, speaking at podium 2. Cutaway of audience 3. Close of sign, reading (German) "Sueddeutsche Zeitung, conference of leading economists 2011," pull out to Merkel speaking at podium 4. SOUNDBITE (German) Angela Merkel, German Chancellor: "And when we talk about this or that policy not yet having an effect in Europe, we should remember that structural reforms in the labour market for example can never take effect between two quarters, when the troika visits a country, but will always take two or three years (before you see any effect at all)." 5. Close of Steffen Seibert, German government spokesman, listening in audience 6. Mid of audience listening 7. SOUNDBITE (German) Angela Merkel, German Chancellor: "We want a Europe with Great Britain. We want a Europe of course with a powerful Poland. And we are inviting as many other countries as possible to participate in or to contribute to the Euro, although it is clear to us that initially that will not be all the states, and we have to deal with that issue." 8. Mid of audience listening 9. Mid of audience listening and recording Merkel with mobile phones 10. SOUNDBITE (German) Angela Merkel, German Chancellor: ++SOUNDBITE INCLUDES CUTAWAY PAN FROM AUDIENCE BACK TO MERKEL++ "And I am firmly convinced that this (market) uncertainty can only be overcome by political solutions, by firm political solutions. And regarding the matter of the ECB (European Central Bank) as a 'lender of last resort', what I will say is that the ECB last summer purchased bonds. Of course that is their own independent decision, I don't want to comment on that. But if politicians think the ECB can resolve the problem of the euro's weaknesses, then I think they are persuading themselves of something that won't happen. And that is why I stress political action." 11. Various of audience applauding, Merkel taking a seat, zoom in to German Chancellor STORYLINE: The German Chancellor said on Thursday that she was convinced that the solution to the current eurozone crisis was not to be found in the European Central Bank's buying up of weak countries' bonds. Angela Merkel brushed aside pressure for a quick-fix solution to the euro crisis even as market tensions mount, arguing that spreading debt liability could ruin Europe's competitiveness and a massive European Central Bank bond-buying drive wouldn't resolve its problems. "And I am firmly convinced that this (market) uncertainty can only be overcome by political solutions, by firm political solutions," she added, speaking in a speech to an economic conference in Berlin. Merkel adamantly opposes the introduction of jointly backed so-called "eurobonds," which backers say would fix concern over the solvency of weaker eurozone countries. She insisted Europe must instead address the continent's problems at the root, and pushed her drive for reform to the European Union treaties to strengthen the currency union. Germany, as Europe's biggest economy, has been instrumental in setting the tone for the 17-nation eurozone's rescue measures, insisting on painful reforms in exchange for aid to troubled nations. However, there is resistance to some German stances. Officials from countries including France and Ireland have argued that the ECB's unlimited firepower should ultimately be brought to bear to bring down the cost of borrowing for pressured nations, such as Italy. But Germany is against this, arguing that it could stoke inflation or take the pressure off governments to get their budgets in order. 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...
