Merkel must slow Westerwelle down

Germany's new coalition had no choice but to cut taxes, however Chancellor Angela Merkel shouldn't go too far with economic liberalism, the daily Le Temps writes: "If we can believe the economic experts the new team had no choice but to increase the public debt and pledge tax relief in the hope that this would boost growth. The crisis is far from being over and the destruction of jobs will continue, consumption will shrink and exports are dwindling. Employees are already facing the prospect of higher health insurance premiums. If in the end employees are forced to pay more towards social insurance the climate could become unhealthy for the Merkel II government. Angela Merkel knows that the Germans would never accept the welfare state being jeopardised. So it's up to her to put a damper on the liberal enthusiasm of her new partner Guido Westerwelle [leader of the German Liberals]."

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