Germany's Merkel says the way out of debt crisis long, far from easy

The way out of the European debt crisis is long and far from easy, said German Chancellor Angela Merkel on Wednesday.

However, with the recent decisions of the European Commission on budgetary control, Europe was "total on the right track", said Merkel during a general debate in the lower house of German parliament.

It is important that the Stability and Growth Pact must be complied with, she said.

Merkel believed investment, sustainable growth and sound financial management belonged together. She cited Ireland and Portugal as positive examples.

With regard to Europe, Merkel compared Germany as "an anchor of stability and growth engine."

The initial situation in Germany is robust, Merkel said, adding that the German Government will continue to back sound budget policies and reduce the debt ratio. Enditem