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May 17, 2010

Germany readies plans to fight euro zone debt

BERLIN (Reuters) – Germany is drawing up plans to boost the euro and avert future debt crises, a finance ministry spokesman said on Monday, declining to confirm reports Berlin wants a German-style debt brake across the single currency zone.

The Sueddeutsche Zeitung and several other newspapers had reported Berlin was pushing the idea of tougher fiscal rules based on a German law to shield the euro zone from excessive debt.

May 12, 2010

Merkel faces anger in own party after vote debacle

BERLIN (Reuters) – German Chancellor Angela Merkel drew fire on Wednesday from some leading conservative allies, rattled by humiliating losses in a regional vote, who accused her of failing to show leadership and set clear priorities.

Merkel has taken the blame for a 10 percentage point slump in support for her conservatives in Sunday’s vote in North Rhine-Westphalia (NRW), Germany’s most populous state, which has cost her majority in the upper house of parliament.

May 11, 2010

Merkel’s caution in euro crisis weakens Germany in EU

BERLIN (Reuters) – Angela Merkel has exposed her shortcomings as a crisis manager in the last few weeks and her growing weakness both at home and in Europe could undermine her efforts to impose the economic reforms Germany wants in the EU. The German chancellor, whose reputation has mutated from the bloc’s most skilled deal-broker to “Madame Non” in a matter of months, looks to have been browbeaten into agreeing a $1 trillion (672 billion pound) weekend deal to save the euro, the biggest burden of which falls on Germany.

On top of that came Sunday’s drubbing at the ballot box in a regional vote which has undermined her domestic authority. That result, which her conservatives blamed on the Greek debt crisis, may make her even more reluctant to show leadership in the EU.

May 9, 2010

Snap Analysis: German state vote weakens Merkel

BERLIN (Reuters) – Germans punished Chancellor Angela Merkel’s center-right coalition in a regional election on Sunday, depriving her of a majority in parliament’s upper house after she angered many voters by agreeing to aid Greece.

Here are some of the main implications of the closely watched election in North Rhine-Westphalia (NRW), Germany’s most populous state, for Merkel and policy in Europe’s biggest economy:

May 6, 2010

Merkel judgment, leadership open to doubt over Greece

BERLIN (Reuters) – Germans feel cheated over the Greek debt crisis and angry at having to pay for the excesses of the euro zone’s most egregious budget sinner.

Chancellor Angela Merkel has played to those emotions, dragging her feet on aid and demanding ever greater sacrifices from Athens as its borrowing costs soared until the crisis threatened to engulf other south European countries.

May 3, 2010

Merkel tries to sell Greek bailout to Germans

BERLIN (Reuters) – Chancellor Angela Merkel began a tough drive to sell a bailout plan for Greece to skeptical Germans on Monday, saying it would help stabilize the euro.

The cabinet swiftly approved Berlin’s 22.4 billion euro ($29.83 billion) share of the 110 billion euros in emergency loans agreed by European finance ministers on Sunday. Both houses of parliament are expected to vote on it on Friday.

May 3, 2010

German SPD raises pressure on Merkel over Greek aid

BERLIN, May 3 (Reuters) – Germany’s opposition Social
Democrats (SPD) will back Berlin’s contribution to a Greek
rescue only if Chancellor Angela Merkel commits to doing more to
fight market speculators, a senior party member said on Monday.

Merkel’s cabinet on Monday approved Germany’s 22 billion
euro share of a bailout package, triggered by European finance
ministers on Sunday. The lower and upper houses of parliament
are expected to vote on it on Friday.

Apr 14, 2010

German threatens legal challenge over Greek aid

BERLIN (Reuters) – A German economist plans to launch a Constitutional Court challenge to the 30 billion euro aid package for Greece agreed by euro zone finance ministers, a German newspaper reported on Wednesday.

The prospect of a challenge – the court said it has yet to receive such a request – highlights the problems Chancellor Angela Merkel faces in convincing a skeptical public that it is right to offer support for Greece, for the sake of the euro.

Apr 14, 2010

Legal threat, ambiguity cloud Greek aid deal

ATHENS/BERLIN, April 14 (Reuters) – Investor doubts, a
German legal threat and persistent confusion over the terms of
aid perforated Greece’s euro zone parachute on Wednesday,
pushing borrowing costs up.

The potential legal action by a German economist compounded
ambiguity over how Athens and its euro peers would activate the
package, sending Greek bond yields towards the euro-era record
territory they hit before details of the deal were announced.

Mar 18, 2010

Q+A-What is behind Merkel’s euro zone strategy?

BERLIN, March 18 (Reuters) – German Chancellor Angela Merkel
has become the first European leader to explicitly call for a
change in EU rules to allow states that repeatedly break the
bloc’s economic guidelines to be expelled from the eurozone.

Her comments are likely to provoke debate as the subject had
been taboo until Finance Minister Wolfgang Schaeuble floated the
idea last week by saying steps should be introduced to allow
states to leave the euro zone in extreme cases.
Here are some questions and answers on what Merkel’s
strategy is on the euro zone and what lies behind it.

    • About Madeline

      "Madeline has been a correspondent in the Berlin bureau since 2006. Before that, she was a parliamentary correspondent in London and an equities reporter in Frankfurt. She has also worked in Vienna and for a variety of UK newspapers."
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