Stuttgart - German Chancellor Angela Merkel called Monday for investment in Germany's infrastructure, including the internet and highways, as a means to beat the financial crisis, but rejected immediate tax cuts.

She appealed for unity in her party, the Christian Democratic Union (CDU), ahead of a general election in September.

She was addressing a two-day party conference in Stuttgart amid deep divisions over how Germany should come to grips with the worst financial upheaval in decades.

She scorned proposals to cut taxes quickly, calling it "a senseless competition" which she would not participate in, but she appeared to leave a door open for minor tax changes when she meets with key supporters in January.

"Germany will keep all options open to fight this crisis effectively," she said. "The government can, where necessary, act at lightning speed."

Merkel said Berlin would focus on investing in Germany's infrastructure, especially motorways, or autobahns, in the west of the country which needed modernizing, as well as extending fast internet connections to rural areas.

"Wouldn't it be a fine objective to ensure that every household in Germany has a broadband connection?" she said. (dpa)