German faith in austerity explained
The two biggest economies in the eurozone, France and Germany, could be on a collision course over the choice of strategy to pull Europe out of the debt crisis.
The new French president has said austerity is not working and it is time to focus on growth, but Germany has experience of austerity leading to a strong economy.
When the Berlin Wall came down, the former West Germany poured billions into helping the East grow and it paid for the expansion by freezing wages for more than a decade.
Graham Satchell reports from Berlin.
15 May 2012
- From the section Europe