Germany: Merkel steadfast on austerity as uncertainty rattles eurozone - by Rachel Brown

Speaking one day after elections saw fellow austerity proponents turfed out of office, including her closest ally, French president Nicolas Sarkozy, Ms Merkel said she had no plans to change course.

"At its core, the discussion is about not whether we need budget consolidation or growth - it is absolutely clear we need both," she told reporters.

"Rather, I think the core of the debate lies in whether we need debt-financed stimulus programs or whether we need growth measures that are sustainable and lead to an improvement of the economic strength of individual countries."

For more; Merkel steadfast on austerity as uncertainty rattles eurozone - ABC News (Australian Broadcasting Corporation)