Germany sees no need for more expansive fiscal policy, official says

Fri May 20, 2016 7:41am EDT
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BERLIN May 20 (Reuters) - Germany see no need for a more expansive fiscal policy, a senior government official said on Friday, adding that Berlin was already making a contribution to growth with investment.

"In the fiscal area, we in Germany have made a contribution. We are making a lot of investments ... So, a concerted fiscal action is not what we see as necessary," the official said, briefing reporters ahead of a meeting of G7 leaders next week.

It is appropriate for the Group of Seven (G7) industrial powers to each have their own economic policy mix, but their governments must inform each other of these measures, the official added.

The official noted that all G7 members had agreed that competitive devaluations of foreign exchange rates should not be used as a policy tool.

Asked whether a British exit from the European Union was on the agenda for the summit of G7 leaders in Japan next week, the official said that G7 finance ministers had already discussed the issue. (Reporting by Michael Nienaber; Editing by Paul Carrel)