Berlin - The effects of the Wall Street financial crisis on Germany have been moderate so far, Chancellor Angela Merkel told the Bundestag parliament in Berlin Wednesday.

In a debate on the 2009 federal budget, she said credit to German business had been significantly expanded.

The government was closely watching the crisis and consulting German banking leaders and other governments.

"An open economy like Germany's won't remain completely unaffected by this," she said.

Merkel said the new budget laid the groundwork for the federal government to cease the growth in net debt from 2011 onwards.

She said education would be a priority in future government spending. dpa jbp