BERLIN (Reuters) – With its record low unemployment, thriving “Mittelstand” companies and consensus-seeking unions, Germany has been held up as a model of economic management at a time when many of its European partners are mired in crisis.

But as the 10th anniversary of the reforms credited with fuelling Germany’s success approaches, a small but vocal group of politicians, businessmen and economists is sounding alarm bells over what they see as a dangerous policy complacency in Berlin that is putting the gains of past years at risk.

BERLIN (Reuters) – German Finance Minister Wolfgang Schaeuble said on Wednesday that Italy’s inconclusive weekend election had raised the risk of market turmoil spreading to other euro countries and urged Italian politicians to form a stable government quickly.

Speaking to Reuters from the finance ministry in Berlin as Italy’s borrowing costs hit their highest level in four months, Schaeuble said it was too early to declare the euro crisis solved.

BERLIN (Reuters) – European Central Bank board member Joerg Asmussen urged France to take “concrete and measurable” steps to bring down its budget deficit, saying Paris faced a test of its credibility and must come as close as possible to its 3 percent goal for this year.

Speaking to Reuters on Friday after the European Commission forecast that France’s deficit would come in at 3.7 percent of gross domestic product (GDP) in 2013, well short of target, Asmussen said the country had a special responsibility, along with Germany, for fiscal stability in the euro zone.

BERLIN (Reuters) – Angela Merkel’s main challenger in this year’s German election attacked her record in a combative speech on Ash Wednesday, accusing the chancellor of stealing policy ideas and cynically profiting from reforms introduced by his Social Democrats (SPD).

Peer Steinbrueck, a former finance minister whose campaign to unseat the popular Merkel got off to a disastrous start last year, tried to reassure the SPD faithful about their prospects in the September vote, vowing to fight for victory and showing off the sardonic wit and feistiness for which he is known.

BERLIN, Jan 31 (Reuters) – The German labour market remains
strong but it is not translating into a significant increase in
private consumption, data showed on Thursday, raising doubts
about the strength of an rebound in Europe’s largest economy.

Federal Labour Office figures showed seasonally adjusted
unemployment falling unexpectedly by 16,000 in January, breaking
a long run of increases to take the jobless rate down to 6.8
percent, not far from a post-reunification low.

BERLIN (Reuters) – Germany plans a modest reform of its banking sector that would put a cap on risky activities but not lead to the breakup of banks or significantly impair big institutions like flagship lender Deutsche Bank, according to a draft law seen by Reuters.

The 64-page bill from the finance ministry, which will be up for cabinet approval early next month, comes four months after an EU advisory group led by Finnish central banker Erkki Liikanen unveiled reform proposals to shield taxpayers and savers from bank collapses.

BERLIN, Jan 30 (Reuters) – Germany plans a modest reform of
its banking sector that would put a cap on risky activities but
not lead to the breakup of banks or significantly impair big
institutions like flagship lender Deutsche Bank, according to a
draft law seen by Reuters.

The 64-page bill from the finance ministry, which will be up
for cabinet approval early next month, comes four months after
an EU advisory group led by Finnish central banker Erkki
Liikanen unveiled reform proposals to shield taxpayers and
savers from bank collapses.