News Summary: German leader urges Europe to reform

TOUGH MEDICINE: German chancellor Angela Merkel said Tuesday that Europe's heavily indebted nations must push ahead with structural reforms to get their economies back on track and must not rely on government spending to foster growth.

THE BACKGROUND: The leader of Europe's biggest economy has long advocated a mix of austerity measures and structural reforms, especially for struggling southern European nations like Greece. She has come under fire from European counterparts who have rallied behind French President Francois Hollande's calls for a regional growth strategy.

NO RELIEF: Merkel said countries that have received a bailout, such as Greece, cannot expect that the attached conditions be relaxed, even if those governments face a popular backlash. She said Europe will only be taken seriously if the governments live up to their commitments.