BERLIN (MNI) – Germany’s Chancellor Angela Merkel Thursday
reaffirmed her government’s belief that the Eurozone crisis can only be
overcome by increasing competitiveness and cutting public debt.

Speaking at a construction industry conference here, Merkel argued
that the rescue mechanisms will only be able to buy Eurozone member
states time. “I’m deeply convinced that we can only make it if we
strengthen competitiveness and lower debt,” she said.

On Wednesday, the Chancellor said crisis-hit Eurozone member states
were already making progress toward becoming more competitive. “The
reforms are showing initial signs of success; the efforts weren’t made
for nothing,” she said in a speech in the European Parliament in
Brussels.

“In Ireland, Portugal and Spain but also in Greece, unit labor
costs have declined markedly,” Merkel noted. “This is an important
element for competitiveness, and the current account deficits are also
shrinking.”

–Berlin bureau: +49-30-22 62 05 80; email: twidder@mni-news.com

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