Germany's Finance Minister has indicated that he supports the hard line position taken by the European Commission in relation to the government's budgetary policies. Speaking at the World Economic Forum in Davos, Hans Eichel said that the responsibility for the fight against inflation in the Euro zone lies with the national governments. He said that in the middle of a boom, no member state should follow a policy that encourages inflation and overheating.
Mr Eichel added that every member of the EU has a responsibility to follow these rules, including Ireland. Asked if he planned to vote of favour of the Commission's recommendation that the Government should be formally reprimanded for its non-adherence to broad economic guidelines, Mr Eichel said that we have a common responsibility and we have to face up to it.
