UK, Germany table EU reform
(VOVworld) - German Chancellor Angela Merkel has praised the UK as Germany’s important ally in pushing EU reform and free trade agreements, adding that she wants the UK in a "strong and successful Europe". During a joint press conference with British Prime Minister David Cameron in London on Wednesday, Merkel agreed with Cameron’s call for restrictions on welfare for new immigrants to avoid abuse of the benefits EU states offer. Cameron said he has outlined specific plans for reform of immigration and welfare. They will not infringe the principle of freedom of movement across the EU which is benefiting British citizens.
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| German Chancellor Angela Merkel and Prime Minister David Cameron, during Mrs Merkel’s visit to London. (Photo: Reuters) |
In related news, the statistical office of the European Union’s Eurostat reported Wednesday that Eurozone consumer prices were 0.2% lower than in the same period last year. The figure was in negative territory for the first time since the 2009 financial crisis. This is a sharp fall from November’s inflation rate of 0.3 percent, raising a fear of possible deflation in the region.
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| A fear arises that deflation may hit the Eurozone. (Photo: AFP) |
The fall in prices was driven mainly by plunging oil prices. Energy prices in the Eurozone experienced a sharp fall of 6.3% in December. The downward trend in prices has slowed spending as consumers wait for prices to fall again. This could lead to deflation.