UPDATE 1-Merkel calls German economy summit as pressure grows
(Recasts after Merkel calls meeting)
BERLIN, Dec 7 (Reuters) - German Chancellor Angela Merkel has scheduled a high-profile meeting of her top ministers and advisers to analyse the economic outlook after pressure piled on her to do more to boost Europe's biggest economy.
Merkel stressed, however, that next Sunday's meeting, which will include her finance and economy ministers, Vice-Chancellor Frank-Walter Steinmeier, bankers and economists, would not decide on any concrete stimulus measures.
"Sunday will be about getting a general analysis and obtaining as much clarity as possible about the economic developments in 2009," Merkel told Bild daily, adding she needed a full analysis of the outlook to devise a response.
Germany, the world's biggest exporter of goods, is facing what many economists say will be the country's deepest recession since the end of World War Two, and business leaders and top politicians are pressing for action such as tax cuts.
"I am still keeping all options open. But I am against speculating publicly every day about the possibilities," conservative Merkel told the paper.
Merkel's uneasy coalition of conservatives and Social Democrats (SPD) has pushed through a stimulus package it says is worth 31 billion euros ($39 billion) over two years.
It includes funding for building projects, cutting car tax and making it easier for business to get credit. Most measures take effect at the start of next year, and Merkel has said she will review the situation in January.
But business leaders and leading politicians are clamouring for more action now.
Options include tax cuts, which Merkel has ruled out until after September's election, spending vouchers to boost domestic consumption and infrastructure projects.
SPD Chairman Franz Muentefering said the government must prepare to act quickly and effectively.
"In the spring, people will rightly say: 'Stop scratching your heads. Just make sure something good is done'," he told Focus magazine.
"We must at all costs make sure the crisis does not turn into a devastating conflagration," said Martin Winterkorn, Chief Executive of Volkswagen (VOWG.DE). "We are in an exceptional situation, and traditional political and economic instruments will not be enough," he told Der Spiegel.
The magazine quoted other business leaders urging the government to cut sales tax, reduce the tax burden on low and mid-level earners and invest in more infrastructure projects.
Some of Merkel's own conservatives also want tax cuts. Continued...
