BERLIN (Reuters) – Angela Merkel’s bid to outflank the opposition by closing all nuclear plants by 2022 smacks of opportunism to many Germans but could ease an alliance with the anti-nuclear Greens that may be her best bet to stay in power.

The German chancellor has, in nine months, gone from touting nuclear plants as a safe “bridge” to renewable energy and extending their lifespan to pushing a nuclear exit strategy that rivals the ambitions of the Social Democrats and Greens.

Merkel had her atomic epiphany after the Fukushima disaster in Japan in March, announcing a moratorium on nuclear power and launching an urgent overhaul of German energy policy, resulting in the exit strategy announced on Monday.

Her change of heart, however genuine as it may be, coincides with a string of disastrous election results for her Christian Democrats (CDU) and their Free Democrat (FDP) allies that have been partly blamed on her unpopular pro-nuclear policy so far.

With the FDP losing popularity almost as fast as the Greens gain it, and the Greens unseating the CDU in their heartland of Baden-Wuerttemberg in March as well as outpolling them for the first time in Germany in Bremen this month, Merkel has upgraded the nuclear moratorium to a rush for the exit.

With opinion polls showing categorically that most Germans dislike nuclear energy, and election results demonstrating that March’s nuclear moratorium alone was not enough to stem the vote losses for the CDU, Merkel probably had no choice.

“I don’t think she will take many votes from the Greens, who have promoted this issue for decades,” said Carsten Koschmieder, a political scientist at Berlin’s Free University.

BERLIN, May 23 (Reuters) – German Chancellor Angela Merkel urged her centre-right coalition on Monday to stop “daydreaming” of an alliance with the fast-growing Greens, who scored another election success in Bremen and set their sights on Berlin.

While it was no surprise that the Social Democrats (SPD) held onto Germany’s smallest state, as they have since 1945, it was a shock to see the Greens come second and beat Merkel’s Christian Democrats (CDU) for the first time in a state vote.

But Merkel’s Free Democrat (FDP) junior coalition partners fared even worse, not even keeping a seat in the state assembly, the fourth bad result in a regional election this year for the unpopular “Liberals”, as the party is known.

“I have called on my party to ensure the success of the current Christian-Liberal coalition and not to daydream about other things,” Merkel said, adding that the key would be to make tough policy decisions about nuclear energy and the euro zone.

The 57-year-old chancellor’s popularity has been undermined by her about-face on nuclear power, which she defended as safe then decided to shut down quickly after Japan’s tsunami, and by German resentment at having to foot the bill for further euro zone bailout schemes. [ID:nLDE74L0AC] [ID:nLDE74F159]

The CDU has suffered a spate of state election setbacks in the past year but Bremen, with only 500,000 voters and an SPD reelection expected, had not been expected to cause upset. It does not impact the Bundesrat (upper house) parliament, where Merkel lost her majority after a state election a year ago.

But she found herself again in the now familiar position of explaining a result that CDU secretary-general Hermann Groehe called “painful” and of justifying the alliance with the FDP.

BERLIN, May 16 (Reuters) – German Chancellor Angela Merkel faces dissent in parliament over the euro zone’s future bailout mechanism and the likelihood of Greece requiring more aid after its 110 billion euro rescue a year ago.

Her centre-right government’s support for the European Stability Mechanism (ESM) prevailed at a party congress of her junior coalition partners at the weekend, but questions remain about her ability to convince the lower house or Bundestag.

With Europe’s largest economy liable for more than a quarter of the funding for the euro zone rescue scheme, solid support in the Bundestag, which must ratify the ESM, is vital. [ID:nLDE74C19B]

WHO ARE THE DISSENTERS?

The ESM, and a new Greek aid package in particular, create unease among many conservative MPs but the majority would still vote with the government. However, dissent has been most vocal among the Free Democrats (FDP), who are the junior allies to Merkel’s Christian Democrats (CDU) and the Bavarian CSU. This is partly due to the FDP’s fall in opinion polls to under 5 percent from the 14.6 percent they scored in the last elections in 2009.

Some in the FDP believe a eurosceptic stance would boost its popularity, but new party leader Philipp Roesler, the economy minister, imposed a pro-European line in a vote on the ESM with a clear majority at this weekend’s FDP congress. [ID:nLDE74D07P]

There are also a handful of MPs in the CDU and CSU who take a tougher line on Europe, worried that Greece cannot deliver on the cutbacks required for the existing aid, let alone another bailout. With markets discounting a Greek debt restructuring, some of them say Europe should just bow to the inevitable.

ROSTOCK/BERLIN, May 13 (Reuters) – German Chancellor Angela Merkel’s coalition tried on Friday to control dissent on future euro zone bailouts and extra aid for Greece among government MPs voicing impatience with calls for German assistance.

With some media saying “more and more members of parliament in the ruling coalition oppose billions more euros in aid” — as Handelsblatt daily wrote on its front page — leaders of her centre-right coalition played down the scale of the revolt.

Merkel’s spokesman Steffen Seibert described contacts with members of parliament on the euro zone as “intense”, telling reporters in Berlin: “Despite what you read in the papers there is a lot of support for government policy in the coalition.”

Disquiet is focused on the new, permanent European Stability Mechanism coming into effect in 2013 and on Greece’s requirement for additional aid after last year’s 110 billion euro package.

The ESM’s effective lending capacity of 500 billion euros will be tapped when the stability of the euro zone is at stake.

But bailouts for Greece, Ireland and now Portugal, plus the worry that Greece will have to restructure or get more aid, have hardened public opinion against handouts in Germany, the biggest European economy whose funding and support is decisive.

“Resistance is building against setting up the ESM … and against additional loans for Greece which euro zone finance ministers will discuss on Monday,” wrote Handelsblatt.

ATHENS/BERLIN (Reuters) – German Chancellor Angela Merkel, Europe’s reluctant paymaster, said on Tuesday she could only discuss further aid for Greece after EU and IMF officials report on implementation of its existing rescue plan.

Speaking to foreign correspondents in Berlin, Merkel did not rule out additional funding for Athens, or a possible fresh easing of the terms on its 110 billion euro ($157 billion) bailout, and she voiced confidence that the German parliament would back a permanent bailout mechanism for the euro zone.

“I need to analyze the findings of the European Central Bank, European Commission and International Monetary Fund first and I can’t comment before that,” she said. “Anything else would not help Greece or Europe.

A source with direct knowledge of the joint inspection mission visiting Athens said EU and IMF officials had not yet concluded whether Greece had met targets required to receive the next tranche of aid under its existing aid deal.

He stressed the inspectors were not discussing any new bailout package with Greek authorities.

A senior German lawmaker said earlier there were signs that conditions for the next payment had not been met.

Euro zone markets steadied amid growing expectations that Greece may receive a new aid package to cope with its debt crisis and avert an early restructuring that could force investors to take crippling losses.

BRUSSELS/BERLIN (Reuters) – The European Union is looking to lower interest rates on bailout loans to Greece and Ireland and is working on a second rescue for Athens in a chaotic effort to prevent a disorderly debt restructuring.

The executive European Commission said on Monday it hoped to see a decision within weeks on reducing the rate charged to Ireland to make Dublin’s debt more sustainable.

“The Commission is clearly in favor of a rate cut,” a spokesman for EU Economic and Monetary Affairs Commissioner Olli Rehn said. “The Commission is against debt restructuring.”

The new Irish government’s bid for lower interest payments has so far been blocked by Germany and France, which want Dublin to drop its veto on harmonizing the corporate tax base in Europe in exchange or raise its own low corporate tax rate.

In Germany, a senior lawmaker in Chancellor Angela Merkel’s conservative party said a further cut in the rate on emergency loans to Greece, already reduced by one percentage point in March, would be justified if it carried out further reforms to reduce its debt risk.

Michael Meister, finance policy spokesman of Merkel’s Christian Democrats, told German radio he opposed any idea that Athens should restructure its debt or that it should consider leaving the euro zone.

However, German Finance Ministry spokesman Martin Kotthaus told a news conference: “There is no discussion at the moment about extending the payment schedule or lowering the interest rates for Greece.

BRUSSELS/BERLIN, May 9 (Reuters) – The European Union is looking to lower interest rates on bailout loans to Greece and Ireland and is working on a second rescue for Athens in a chaotic effort to prevent a disorderly debt restructuring.

The executive European Commission said on Monday it hoped to see a decision within weeks on reducing the rate charged to Ireland to make Dublin’s debt more sustainable. [ID:nBRU011475]

“The Commission is clearly in favour of a rate cut,” a spokesman for EU Economic and Monetary Affairs Commissioner Olli Rehn said. “The Commission is against debt restructuring.”

The new Irish government’s bid for lower interest payments has so far been blocked by Germany and France, which want Dublin to drop its veto on harmonising the corporate tax base in Europe in exchange or raise its own low corporate tax rate.

In Germany, a senior lawmaker in Chancellor Angela Merkel’s conservative party said a further cut in the rate on emergency loans to Greece, already reduced by one percentage point in March, would be justified if it carried out further reforms to reduce its debt risk.

Michael Meister, finance policy spokesman of Merkel’s Christian Democrats, told German radio he opposed any idea that Athens should restructure its debt or that it should consider leaving the euro zone. [ID:nBAT006211]

However, German Finance Ministry spokesman Martin Kotthaus told a news conference: “There is no discussion at the moment about extending the payment schedule or lowering the interest rates for Greece.” [ID:nBAT006213]

BERLIN, May 9 (Reuters) – A senior member of parliament for German Chancellor Angela Merkel’s conservatives said on Monday a further cut in interest rates for Greece’s bailout would be justified if it carries out reforms to reduce its debt risk.

Some members of Merkel’s coalition have suggested that Greece should leave the euro or restructure its debt, but the government overall appears supportive of simply easing the terms of aid for Athens in return for more reforms.

Michael Meister, the deputy parliamentary chief of Merkel’s conservative bloc, told German radio he opposed any suggestion that Greece should restructure or give up its membership of the single currency, as one German magazine reported.

If Greece can reduce its debt risk “then its partners in the euro zone can could consider talking about whether to reduce interest rates further and about the repayment schedule”, said Meister, emphasizing that first it was up to Greece to act.

German newspaper Die Welt reported that Athens would like the interest rates on its bailout from the European Union and International Monetary Fund lowered as well as an easing of the savings measures it is required to make in return, which are proving too much of a burden on its economy.

Greek Prime Minister George Papandreou was forced to deny on Saturday a report in influential German magazine Der Spiegel about Greece leaving the 17-member euro zone and a restructuring of its 327 billion euro ($470 billion) debt. [ID:nLDE7451YY]

Some eurosceptic members of Merkel’s coalition and one senior German economist, Ifo Institute President Hans-Werner Sinn, said on the weekend Greece should be encouraged to abandon the euro.

BERLIN, May 6 (Reuters) – German Chancellor Angela Merkel opposes Mario Draghi’s candidacy to lead the ECB because of Italy’s poor record on debt, magazine Der Spiegel said on Friday – a move which would put her at odds with euro zone peers.

Hours after France’s finance minister said her German peer Wolfgang Schaeuble backed the Italian central banker for the ECB presidency — as does Paris — the well-connected Der Spiegel reported what looked like a toughening of negotiating positions.

Berlin was widely understood to have dropped the idea of it being Germany’s turn to chair the Frankfurt-based ECB when Axel Weber, the Bundesbank chief and main German candidate, said in February he would quit the German central bank and ECB contest.

Draghi, the respected head of the Financial Stability Board who spent time at the Italian treasury and at the investment bank Goldman Sachs, then emerged as the favourite and won the outright support of French President Nicolas Sarkozy last week.

But Draghi’s bid to succeed Jean-Claude Trichet still needs German endorsement and Berlin has been dragging its heels, with Der Spiegel reporting last week that the conservative chancellor was holding out for concessions in return for backing Draghi.

The magazine said in its last edition that she wants Germans to be appointed to two top European financial positions as well as getting more concessions on the permanent euro zone bailout fund, the European Stability Mechanism (ESM).

In a preview of its upcoming edition, Der Spiegel appeared to reflect a harder line from the chancellor, saying she would block his candidacy rather than just being hesitant about it.

BERLIN, April 7 (Reuters) – Germany threw its weight behind Portugal’s request for financial help from the European Union on Thursday with Chancellor Angela Merkel’s conservatives and their sometimes eurosceptic allies looking likely to back such a deal.

Finance Minister Wolfgang Schaeuble, mindful of the concerns among taxpayers of Germany already bearing the brunt of existing bailouts for Greece and Ireland, pointed out that such aid could only be granted in return for tough reforms.

Calling it a “sensible and necessary step”, Schaeuble said in a statement that within the current bailout mechanism, aid was only available in return for “an adjustment programme”.

But crucially the first signals from members of Merkel’s coalition were positive for Lisbon, including from her junior partners, the Free Democrats (FDP), who sometimes talk tough on bailouts to boost their flagging popularity at home.

Senior FDP figures including Volker Wissing, who heads the German parliament’s finance committee, welcomed Portugal taking a step that has long been widely considered inevitable.

“We’re relieved that Portugal is now seeking aid and thus sending a signal that will calm markets,” said Wissing.

Dire warnings about the euro zone turning into a so-called “transfer union”, where Germany with its vibrant economy and deep pockets has to fund the debts of spendthrift peripheral European states, get a receptive audience in Germany.