DAVOS, Switzerland â€" One of Germany’s top political leaders on Friday offered unusually generous praise for Greece’s efforts to deal with its economic crisis, and said that other European countries should help Greece deal with an influx of immigrants to prevent them from becoming fodder for right-wing parties.
Wolfgang Schäuble, the German finance minister, also said that Germany had begun doing more to stimulate domestic demand, answering criticism that the country has been overly focused on austerity and stingy in sharing its own economic success. Germany has Europe’s largest economy, and higher consumer spending there would help the rest of Europe by increasing demand for goods produced elsewhere.
“We have been asked to do more for domestic demand, and we’re doing that,†Mr. Schäuble said during an appearance here. As an example, he mentioned plans by the newly formed government to increase pension benefits for stay-at-home mothers.
Since the beginning of the euro zone crisis, Germany has gained a reputation for scolding Greece and other members of the euro zone that allowed government debt to get out of control while neglecting their economic competitiveness. Germany has insisted on strict austerity programs that have sharpened the economic pain for citizens of Greece and other countries.
But in Davos on Friday, Mr. Schäuble, one of Germany’s most seasoned politicians, praised crisis countries including Portugal and Ireland for their efforts to return to health. “Greece has made more progress than anyone would have thought a few years ago,†he said, though he added that Greece requires continued pressure to stay the course.
Mr. Schäuble said that Greece â€" with its location on the edge of Asia and long coastline facing the Mideast and Africa â€" had become a prime landing point for illegal immigrants. Golden Dawn, a right-wing party with a reputation for violence, has exploited fear of immigrants to win support for its xenophobic platform. Mr. Schäuble said the European Union should show “solidarity†with Greece in dealing with the immigrant issue and avoid nurturing extremists, though he did not give specifics.
His remarks were in line with the prevailing view at the World Economic Forum this year that the economic situation in the euro zone had improved, but that there remained a serious risk of political upheaval because vast numbers of people remained unemployed or otherwise suffered grave economic distress.
Mr. Schäuble, the highest ranking German official at the World Economic Forum this year, quipped that while the European economy has not yet crossed over the mountain, “it has at least reached the level of Davos.â€
