Italy wins Merkel praise as German economy slows

yahoo.com

German Chancellor Angela Merkel on Wednesday assured Italy its tough austerity measures would be "rewarded", amid signs her own economy was grinding to a halt as tensions in eurozone markets simmered.

Capping a flurry of diplomatic activity as leaders strive to stem the crisis that threatens to tip the 17-member eurozone into recession, Merkel expressed "great respect" for Italian Prime Minister Mario Monti's reform efforts.

Rome's painful austerity measures "will strengthen Italy, will improve its economic prospects," said Merkel, adding: "We have watched with great respect how quickly they have been implemented."

"I think that overall, the work inside the Italian government will be rewarded," said the chancellor, who has spearheaded Europe's efforts to tame the eurozone crisis now entering its third year.

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