GERMAN ECONOMY AND THE EURO-ZONE

Early day motion 1144, tabled 29 November 2005 by Kelvin Hopkins (Labour). Signed by 38 members.

That this House expresses its concern about the continuing low economic growth and high unemployment in Germany; recognises that the new coalition government faces serious difficulties in reviving economic activity in Germany and the importance of a strong German economy for the whole of the European Union; considers that the recent measures proposed by the new government for dealing with Germany's economic difficulties are essentially deflationary, involving as they do a net tightening of fiscal policy, so that they will have the opposite effect to that required; believes that what is really needed is a significant loosening of monetary policy by means of a cut in interest rates to stimulate domestic consumer demand in Germany; is therefore alarmed that the European Central Bank is contemplating an increase in interest rates which will make Germany's problems worse; and further believes that the German economy will not recover while gripped in the deflationary vice of the eurozone.

Signatures by party: Conservative 20, Labour 16, DUP 2.