Germany was accused of taking Europe to the way of deflation

German Finance Minister, Wolfgang Schaeuble.

The German Finance Minister, Wolfgang Schaeuble, endured harsh criticism during the meetings of the International Monetary Fund (IMF) in Washington over the weekend and dismissed suggestions that Berlin is under pressure to change the economic management.

Berlin had not been so isolated in its European economic policies since the peak of the financial crisis in the euro area over two years ago.

The former Secretary of the United States Treasury, Larry Summers, in a panel discussion accused Germany of leading Europe down a path of Japanese-style deflation with the wrong approach in fiscal consolidation.

While Luis de Guindos, Spanish Minister of Economy, hopes that “Europe does not fall into a third recession.” Guindos said that the euro zone faces an economic “crossroads,”so that the authorities of the monetary union must initiate a profound “reflection” on the joint growth strategy.

Traditional allies, such as the Finnish Jyrki Katainen, a future president of the European Commission, warned that Germany will not be able not remain strong forever unless it invests more in its own infrastructure and education system.