Merkel: Austerity and growth are not incompatible

German Chancellor Angela Merkel said today that Italy has already taken important steps to address the weaknesses of its economy.

"We want to ensure that Europe will emerge from this crisis stronger than before. Every country must play its role," the German Chancellor said during a joint press conference in Berlin with the new prime minister of Italy Enrico Letta.

Merkel assured that fiscal discipline and growth are not conflicting notions. "For us, in Germany, fiscal consolidation and growth are two elements that do not interfere with each other but develop harmoniously in order to increase competitiveness and create more jobs."

"Fiscal policy, of course, is not everything. We make politics about people and people want jobs and that is why Europe must be able to generate employment and encourage investment. We have much work to do in this area," she added.

Merkel reiterated many times that "fiscal discipline and growth are not opposite notions," and that "the ultimate goal is not the percentage of shortfall or development, but to put the people back to work."