Debt crisis 'to last five years'

Europe's sovereign debt crisis will last at least five more years, Germany's Chancellor Angela Merkel has said.

Mrs Merkel said the continent was on the right path to overcome the crisis but "whoever thinks this can be fixed in one or two years is wrong".

Two years ago some heavily indebted European countries were dragged into the turmoil that first gripped global financial markets in 2007.

Greece in particular has been struggling with the austerity conditions imposed on it by countries such as Germany.

But Merkel told a regional meeting of her Christian Democratic Party on Saturday that the time had come for "a bit of strictness."

Otherwise, she said, Europe would not be able to attract international investment.