Germany’s Scholz seeks broad alliance to curb inflation

BERLIN (AP) — German Chancellor Olaf Scholz says he wants to join employers and labor unions in a “concerted action” to find ways of cushioning the effects of rising prices while preventing inflation. Germany has Europe’s biggest economy and like other countries has seen inflation accelerate sharply since Russia’s invasion of Ukraine pushed up fuel and food prices. An official estimate this week showed the country’s annual inflation rate jumping to 7.9% in May. Scholz told the German parliament on Wednesday that debt-financed government aid was not a long-term solution, especially since Germany is aiming next year to honor a rule limiting its public borrowing. The rule was suspended during the coronavirus pandemic.