Europe's credibility at stake on budget policy

Berlin - German Chancellor Angela Merkel said on Wednesday that it was up to each European country to deliver on its promise of sound budget policies, warning that the credibility of the entire bloc was at stake.

"Long-term, sustainable growth can only be attained on the basis of solid budget policies.

This is about the credibility of the European Union," Merkel told a business conference in Berlin hours after France announced it would not meet agreed EU deficit targets until 2017, four years later than initially promised.

"We are not at the point where we can say the crisis is fully behind us. Therefore, it is now important for everyone to fulfill their commitments and obligations in a credible way," she said, without naming any countries.

"This can only be done by the member states themselves. It is the responsibility of each state to do their homework to boost their competitiveness."