Germany remains a good location for business despite emissions scandal, says Merkel

Germany is still a good business location despite the Volkwagen emissions scandal, chancellor Angela Merkel said over the weekend.

Speaking on the country's radio, Merkel told listeners that while the scandal was "drastic", she didn't feel the events were so damaging the country's reputation had been damaged.

"I believe the reputation of the German economy and the trust in the German economy has not been shaken by this to the extent that we are no longer considered a good business location," the chancellor said.

Her words come as the European Parliament head Martin Schulz told German newspapers that the scandal was "a heavy blow for the German economy as a whole".

However, he added that Volkswagen "is a strong company that has every chance of surviving the crisis".