Merkel faces pressures to raise growth incentive spending

German Chancellor Angela Merkel has been facing pressure at a cabinet meeting Monday to boost economic growth incentive spending, which the grand coalition government had agreed to invest before taking office in November.

Starting a two-day special meeting at the 300-year-old Genshagen Palace south of Berlin, Merkel said she expected positive signals for growth and employment in the country to emerge from the meeting, which aims at discussing the economic growth boost package of measures.

Some politicians suggested to raise the package's value above the 25 billion euros (30.4 billion U.S. dollars)the coalition government originally agreed to spend to stimulate growth and employment.

General Secretary of the Social Democratic Party (SPD) Hubertus Heil urged to increase the fund, which include investment in science and infrastructure projects, tax breaks for small and medium sized businesses and a renewed fight against red tape.

"If there was a little bit extra, then that would be good, because we have to have more economic impulses this year," Heil told German public television ARD on Monday before the meeting.

"We need growth," he said, stressing it was more important than discussing new measures to help fortify Germany's fragile labor market.

But Vice Chancellor and Labor Minister Franz Muentefering, a SPD, emphasized that 25 billion euros was the ceiling to be spent under the four-year government investment program.

The meeting will also focus on topics of nuclear energy and health insurance reform.

Source: Xinhua