ELECTION YEAR: Merkel vows to spend more on Germany's infrastructure

German Chancellor Angela Merkel promised on Saturday to increase investment in infrastructure in Europe's biggest economy in 2017, an election year, without resorting to new borrowing.

Germany, which runs a budget surplus, has resisted pressure from European peers to spend more to help boost euro zone growth and last week the European Commission effectively urged Germany to loosen its purse strings next year.

In her weekly podcast, Merkel - who is expected to announce on Sunday that she will run for a fourth term as chancellor next year - said her government would raise spending on roads, railways and broadband as well as on education.

Despite the increase in spending next year, "there will be no new debts at the cost of future generations", Merkel said.

More at Reuters.

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