A row between Britain and Germany over the global recession intensified last night when Angela Merkel's CDU party blamed Gordon Brown for mishandling the British economy.
As Brown and Merkel discussed a Europe-wide €200bn (£176bn) fiscal stimulus plan at a summit in Brussels, the CDU's budget spokesman intervened in the most sensitive area of British politics to accuse the prime minister of presiding over a "complete failure" of policy.
The move by Steffen Kampeter marked a ratcheting up of the pressure in a row that began when Peer Steinbrück, the finance minister, rejected Brown's fiscal stimulus plan as "crass Keynesianism".
Brown claimed that "internal German politics" were behind a scathing attack on his economic policies from one of the EU's most powerful finance ministers. The prime minister also asserted that the Berlin government was pursuing policies similar to his, contrary to the claims made by Steinbrück.
But the Conservatives argued that Steinbrück's comments were damaging to Brown because they showed that Tory concerns about his policies were shared by other politicians around the world - contrary to what Brown has been saying.
Kampeter also rejected Brown's claims, saying: "Peer Steinbrück's comments have nothing whatsoever to do with internal German politics as prime minister Brown has suggested. In questioning the British government's approach, Peer Steinbrück is exactly expressing the views of the German grand coalition.
"After years of lecturing us on how we need to share in the gains of uncontrolled financial markets, the Labour politicians can't now expect us to share in its losses. The tremendous amount of debt being offered by Britain shows a complete failure of Labour policy."
British government sources last night dismissed the Kampeter statement. A source said: "Steffen Kampeter is a backbench MP. He is not a minister and has no executive position. This shows there is a vociferous debate going on in Germany about what next to do with fiscal policy and we are getting dragged in. What matters is what Angela Merkel says and she said at the summit that she supports the European commission's fiscal stimulus plan."
As she arrived in Brussels yesterday Merkel welcomed the commission plan. "We support the view of the [European] commission that we need to provide 1.5% of GDP for the stimulus package to strengthen the economy. Germany is aware of its responsibility as Europe's biggest economy and Germany will also look at what we may have to do."
Agenda
Recession The divided 27 leaders are debating a €200bn (£176bn) economic stimulus package drawn up by the European commission (EC) to reboot the bloc's economy as it faces recession well into 2010. The EC wants them to endorse its target of spending 1.5% of GDP on new infrastructure and green technologies to save millions of jobs at risk.
Climate Change A "20/20/20" (20% cut in emissions, 20% renewables in primary energy use and 20% improvement in energy efficiency by 2020) programme to combat climate change and promote energy security
Reform Revitalising the stalled Lisbon Treaty by getting Ireland to stage a second referendum
Security Enhanced European security and defence policy, with a 60,000-strong rapid reaction force
