Merkel says debt biggest danger to Europe's prosperity

28th January 2011, Comments 0 comments

German Chancellor Angela Merkel on Friday called on countries to fight indebtedness, warning that it is the "biggest danger" for Europe's prosperity.

"Indebtedness is the biggest danger for prosperity on this continent. This is why we have to resolutely work against it," Merkel told business leaders gathered at the Davos meeting of the World Economic Forum.

The leader of Europe's biggest economy also renewed her pledge to defend the bloc's single currency, adding that "there is no doubt about this and we need to pursue a policy of euro stability."

"Budget consolidation remains of prime importance to us and has not caused us any problems, quite the opposite," said Merkel.

Germany has been pushing for reforms in the eurozone, calling for indebted countries such as Greece and Ireland to reduce their borrowing.

© 2011 AFP

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