BERLIN Oct 11 Germany's planned tax cuts could
stabilise domestic demand and help stimulate the European
economy, Chancellor Angela Merkel said on Thursday, noting the
country was feeling the effect of economic collapse in southern
"It is our job to stimulate the European economy, including
with planned tax cuts," she said at a press conference in Berlin
with Hungary's Prime Minister Viktor Orban.
"We are trying hard to continue growth and keeping domestic
demand high to import goods from other euro zone countries," she
Germany's upper house of parliament in May rejected
government plans to reduce taxes by about 6 billion euros, which
the opposition said would be irresponsible at a time of budget
Asked about a demand by the International Monetary Fund that
Greece be given more time to meet bailout conditions, Merkel
said she would base her judgement on the report by the "troika"
of international lenders.