joerg: brussels is not tough.ude juncker we are a political commission and we are soft on rules. past, howen in the soft the commission has been on france. when the european parliament june, thisre over in situation will come down and the populace in italy and the commission will find a kind of compromise. chief economist at deutsche bank believes that brussels needs to be softer from what it is because of the surplus they have had in the past. do you reject that? joerg: absolutely. we have the opposite position. if you look at the deficit of and adjusted for interest repayments and for the business cycle, you can see there was no austerity at all over the past years. the deficit has increased and italy suffers not from austerity but from too much spending, especially in noninvestment areas. francine: when you look at germany, what would the growth firmer and -- growth of germany look like without angela merkel? joerg: angela merkel is not very important as far as the growth outlook is concerned. has notan governm

we are going to reiterate our budget fundamental characteristics and rationality that joerg and we'll continue to discuss ways of bringing our position in line with the european commission has now gotten all suppose it's you'll only see that we'll also take the worsening economic forecasts for europe and italy into consideration that only confirms that our budget proposal makes out it's. more debt for more growth the italian banks aren't convinced that deficit spending will end well a report says the country's five biggest banks are considering opening a two and three quarter billion euro credit line to the central banks deposit protection fund the credit line would serve to strengthen support for weaker lenders in the event of a banking crisis. and earlier we spoke to german economist you're going to shock the c.b.s. former chief economist and also what was likely to happen next is what he told us at a certain point in time there will be a showdown the question is whether the italian government will hit the wall with the u. commission or other european institutions over the markets i