Merkel reiterates budget consolidation possible alongside growth

FXStreet (Łódź) - German Chancellor Angela Merkel reiterated on Tuesday remarks made after the meeting with French PM Manuel Valls on budget consolidation, which in her opinion can be carried out alongside growth boosting measures.

She said that budget consolidation in Germany was necessary due to the ageing population and added that there is little leeway for government spending. She pointed to sharp differences in German and French demographics.

As far as the situation of Greece is concerned, Merkel expressed confidence that the country would see growth returning soon, thanks to the austerity efforts it has made.

Furthermore, the German Chancellor stressed that Russia was continuing to destabilize Ukraine and pointed out that "freedom and stability are prerequisites and it's not taken granted in Europe lately."

Merkel suggested that it's Europe's responsibility to support Ukraine, although she admitted that she didn't expect a quick solution of the current situation.