德国

Lagarde warns Berlin on trade

Christine Lagarde, France's finance minister, has issued an unusually blunt warning to Germany, saying its trade surpluses built on holding down labour costs would be unsustainable for other eurozone countries.

Ms Lagarde said Berlin should consider boosting domestic demand to help deficit countries regain competitiveness and sort out their public finances.

Her comments break a long-standing taboo between the French and German governments about macroeconomic imbalances inside the bloc, which have been exposed by the Greek crisis.

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