Angela Merkel, the German chancellor, raised European hopes on Thursday that Berlin might go beyond its €12bn national stimulus package already announced, despite this week’s outspoken attack on the UK’s plans by Peer Steinbrück, the Germany finance minister. Ms Merkel, speaking at the start of a two-day EU summit in Brussels, said: “Germany is aware of its responsibility as Europe’s biggest economy and Germany will also look at what we may have to do” and gave her backing to the €200bn ($267bn, £178bn) European stimulus package that is on the table in Brussels. She plans new stimulus measures in early January. The Social Democrat finance minister stirred up political controversy in Britain when he attacked Gordon Brown, UK prime minister, for announcing a £20bn fiscal package, including a £12.5bn cut in value added tax. Mr Steinbrück told Newsweek: “All this will do is raise Britain’s debt to a level that will take a whole generation to work off.”

