Jose Manuel Barroso says Angela Merkel not to blame for harsh austerity policies This crisis and the problems that go with it are not the result of German policies or the fault of the European Union. They are the result of excessive spending policies, of lack of competitiveness and irresponsible action by the financial markets," he was quoted by the paper as saying. The Commission is perceived very differently in the countries of southern Europe than in Germany, namely, as an apostle of austerity. He added that Merkel "invests a lot of time and energy into the European project. I wish we could say the same for all the other heads of government. Europe is becoming increasingly divided on the issue of austerity amid growing unpopularity with the public. A rift between the eurozone's two largest economies was exposed last week, when a leaked internal briefing from Mrs Merkel's coalition partners labelled France "Europe's biggest problem child" and referred to President Francois Hollande as "meandering." Italy's new premier Enrico Letta also vowed last week to end "death by austerity," and warned that Europe itself faces a "crisis of legitimacy" unless it charges course.