Bundesbank chief hits back at Lagarde's criticism of German surpluses

Frankfurt

JENS Weidmann hit back at criticism of Germany's current-account and budget surpluses by International Monetary Fund managing director Christine Lagarde, saying that increasing public spending to tackle the issue would be the wrong way to go.

The Bundesbank president kicked off a joint conference by the two institutions by insisting that Europe's largest economy doesn't need more expenditure, though he agreed that it should be improved. Public outlays should shift away from consumption and toward targeted investment, he said.