Austerity advocate Merkel gets 750-euro pay rise
German Chancellor Angela Merkel, Europe’s chief advocate of austerity, is soon to pocket an extra 930 euros a month, bringing her salary to 17,016 euros a month. After meeting new French President François Hollande in Berlin Tuesday, Merkel insisted she would not give in to his call to renegotiate the eurozone stability package.
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Germany’s cabinet on Wednesday voted itself a 5.7 per cent pay rise, bringing ministers’
salaries to about 13,795 euros a month and the chancellor’s to 17,016 before tax.
German ministers have not had a raise for 12 years.
After Tuesday’s meeting with Hollande Merkel told the press that she still had differences over growth in Europe with Hollande.
In other austerity news:
- Greece is to hold an election on 17 June, its second election within two months following the failure of all parties to form a government;
- Portugal’s unemployment hit a record 14.9 per cent in the first quarter of 2012;
- France raised nine billion euros in its first bond sale since Hollande was elected – at a lower rate for short-term issues but a slightly higher rate for longer-term;
- The yield on 10-year Spanish government bonds jumped to 6.495 per cent on Wednesday, well above the 6.0 per cent considered to be unsustainable in the long term;
- Italian bonds came close to 6.0 per cent;
- The International Monetary Fund praised Italy’s budget and economic reforms as a model for Europe.
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