She was speaking to the German parliament at the debate on the 2015 budget, which would be the nation’s first balanced budget since 1969.
The 2015 budget follows a forecast deficit of 8.4 billion dollars for this year.
Merkel told the German parliament that the EU was right to warn that stepping back from strict budget discipline and budget reform ,”would represent an enormous risk to the recovery” in the 18-member euro zone economy.
She insisted that what was true for Germany, also applied to Europe, without any form of sentiments.
Merkel said Germany had been stepping up moves to head-off calls from its euro zone partners to ease the region’s strict fiscal targets, so as to help them remain on an economic growth path.
She said Italy and France had been spear-heading a drive in Europe to promote economic growth by relaxing the strict budget rules and fiscal austerity, championed by Germany.
Merkel said Europe must meet obligations already agreed so that, unlike in the past, this would finally become the euro zone’s trademark.
Observers said this was a blow to Berlin’s allies in the currency bloc, who had been pressing for a relaxation of tough budget rules to help boost jobs and economic growth.