France’s ruling Socialist Party is pressing President Francois Hollande to toughen his stance towards a German counterpart it describes as “self-centered”, arguing that Chancellor Angela Merkel’s pro-austerity policies are hurting Europe.  Article  The austerity debate continues.  If Germany and other core euro-area economies were to shift from cutting spending to providing a stimulus, then imports from Europe’s weaker economies would grow and those countries wouldn’t be forced to do all of the adjusting. Their recessions would be shallower as a result.  Regrettably, there is little sign that there is the political will for this in Germany. The risk is that by the time the euro area’s stronger economies do support a more symmetrical adjustment, they may themselves be too fiscally burdened to help.  Article

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