The finance minister of Germany says that the euro zone’s emphasis on austerity must be tempered by other policies.

Speaking at an investment conference in London, German Finance Minister Wolfgang Schäuble said that euro zone governments have sufficient capabilities to tackle an economic recession.

He added that it is necessary for Europe to strike a balance between growth and austerity. He is in London for a two-day meeting of Group of 7 finance ministers.

Germany had stressed belt tightening as a fundamental solution to the euro zone crisis. However, it is making apparent concessions to the stance, as economic growth in the euro zone was discouraged for five consecutive quarters and the region is said to have failed to get out of recession in the first quarter of this year.