UK-German war of words continues
The war of words between Germany and the UK continues today as European leaders negotiate in Brussels for the final day of the EU summit.
This morning foreign secretary David Miliband told the Today programme German chancellor Angela Merkel was part of a “widespread recognition” of the need for fiscal stimulus.
“The important point is that from the leadership of Germany, from the chancellor of Germany, from the prime minister of Britain, from 25 other European leaders, you’ve got a widespread recognition that whatever the national differences this is a time for fiscal stimulus,” he said.
“It’s a time for action by government and it’s a time for intervention.”
The UK government’s response to the German comments – that they reflect internal divisions within Germany’s Grand Coalition – looked tenuous yesterday as Steffen Kampeter, of Ms Merkel’s Christian Democrats party, backed the earlier comments by Peer Steinbruck of the Social Democrats.
“In questioning the British government’s approach, Peer Steinbruck is exactly expressing the views of the German Grand Coalition,” he said.
“After years of lecturing us on how we need to share in the gains of uncontrolled financial markets, the Labour politicians can’t now expect us to share in its losses.
“The tremendous amount of debt being offered by Britain shows a complete failure of Labour policy.”
He continued: “Peer Steinbruck’s comments have nothing whatsoever to do with internal German politics, as prime minister Brown has suggested.
But Mr Steinbruck appeafred to back down over his comments, saying: “There is no question of criticising our British friends. Nothing is further from our minds.”
Mr Brown said: “I do not really want to get involved in what is clearly internal German politics here, because they have a coalition in Germany with different political parties.”
The prime minister’s spokesman added: “Clearly there is a debate taking place in Germany about the nature of any additional fiscal stimulus measures.”
Shadow chancellor George Osborne seized on Mr Steinbruck’s comments as evidence the Conservatives were not alone in opposing the government’s economic policy.
In a piece for the Independent today, Mr Osborne wrote: “In the very same week that Gordon Brown stood up in parliament and claimed that he had saved the world, the world answered back.”
The economic crisis has provoked a change in traditional European relations.
Germany and France usually behave as close partners, but with the personal relationship between Ms Merkel and French president Nicolas Sarkozy problematic and the French sharing Mr Brown’s Keynesian tendencies, the UK and France are now emerging as closer partners.
Germans are nervous of the level of borrowing being proposed in London and Brussels. The country is still sensitive to the idea of out-of-control inflation after the collapse of the Weimar republic. Germany also has considerably lower levels of debt that its European allies.
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