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Monday, January 9, 2012

The New Debate In Europe: How To Jumpstart The Economy?

German Chancellor Angela Merkel, right, and French President Nicolas Sarkozy, left, stand next to each other during a news conference at the Chancellery in Berlin, Germany, Monday. (AP)

Even as the debt crisis continues to grow in Europe, the debate there has shifted. At a conference in Berlin Monday, the leaders of France and Germany said that boosting growth in the European economy is a priority, and that growth is crucial to resolve the debt crisis that has thrown the Euro’s future into doubt.

But the debate on how to achieve that growth echoes the political debate in the U.S. — Germany insists on severe austerity measures in failing economies like Greece, while some economists and policy makers say spending is needed to grow the economy.

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