Weaker economy gives us reason to try to stimulate domestic economy: Merkel

German Chancellor Angela Merkel said on Friday that Europe's largest economy was in a "somewhat more difficult phase" after a decade of growth, adding that gave grounds to try to stimulate the domestic economy.

"That is for us an incentive not just to continue work in the area of research and development but of course also to stimulate the domestic economy," Merkel told a news conference, adding that a solidarity tax would be reduced for most taxpayers but there would not be a big corporate tax reform.

She said she thought the economic slowdown was largely due to uncertainty in global trade.