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.

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.