Chancellor Angela Merkel is insisting Germany should not bend to pressure to ease up on efforts to keep labor costs as low as possible, arguing that doing so would do nothing to help Europe, AP reports.

Merkel says Tuesday, Sept 25 at an industry conference there can be "no compromise" in Germany's approach to making sure labor costs remain competitive.

Many economists outside Germany have argued that while the approach has helped make German exports more competitive, it's been at the cost of other economies in the 17-country eurozone.

Merkel has consistently pinpointed differences in competitiveness as a central problem in Europe and that much more needs to be done despite recent reforms in countries like Italy and Spain.