Germany's Merkel says to spend more on infrastructure in election year
- Nasdaq hits record; bank earnings validate Wall St. rally
- Intrawest Resorts (SNOW) Exploring a Possible Sale - Reuters
- Alibaba (BABA) Has No Plans to Acquire Rest of Groupon (GRPN) - Source
- Time (TIME) Said to Soon Begin Discussions with Interested Buyers - Bloomberg
- JPMorgan (JPM) Reports Q4 EPS of $1.71
German Chancellor Angela Merkel attends a news conference in Berlin, Germany, April 6, 2016. REUTERS/Hannibal Hanschke/File Photo
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
BERLIN (Reuters) - German Chancellor Angela Merkel promised on Saturday to increase investment in infrastructure in Europe's biggest economy in 2017, an election year, without resorting to new borrowing.
Germany, which runs a budget surplus, has resisted pressure from European peers to spend more to help boost euro zone growth and last week the European Commission effectively urged Germany to loosen its purse strings next year.
In her weekly podcast, Merkel - who is expected to announce on Sunday that she will run for a fourth term as chancellor next year - said her government would raise spending on roads, railways and broadband as well as on education.
Despite the increase in spending next year, "there will be no new debts at the cost of future generations", Merkel said.
She also said money spent on integrating migrants was "a good investment" as it would mean they would be able to use Germany's education system and then join the workforce.
Fears about the integration of almost 900,000 migrants last year, many from war zones in the Middle East, have dented Merkel's popularity but her government argues that many will in the long run be a valuable part of the labor force.
Finance Minister Wolfgang Schaeuble has planned a balanced budget for the next four years.
A document showed on Friday that Merkel's conservative Christian Democrats (CDU) plan to divide surplus tax revenues between infrastructure investment, tax relief and spending more on foreign and security policy.
Merkel also said she wanted to increase spending further on defense and on the NATO alliance. "Security plays an important part and that is not just the case since the election of a new president in the United States," she said.
The German parliament debates the government's budget proposals next week. Last month, the government raised its growth forecast for this year to 1.8 percent from 1.7 percent
(Reporting by Madeline Chambers; Editing by Dale Hudson)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Serbia wants to annex part of Kosovo using 'Crimea model': president
- Indian election commission backs son in family dispute over party
- At least two dozen dead in ethnic clashes in southeastern Congo
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!