Merkel

Merkel backs euro fund boost, faces revolt risk

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(Reuters) – German Chancellor Angela Merkel’s cabinet approved new powers for the euro zone’s bailout fund on Wednesday, but she faces an uphill battle to convince party skeptics to back efforts to contain the crisis. Concerned that Germany’s parliament has little control over the European Financial Stability Facility (EFSF), some members of Merkel’s center-right coalition are threatening to oppose boosting its powers when the Bundestag (lower house) votes on September 29. If enough conservatives rebel and Merkel is forced to rely on opposition parties to pass the legislation, she could face pressure to dissolve parliament and call early elections, although … Read more

Merkel, Sarkozy propose eurozone government

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PARIS (AP) — All countries that use the euro should have mandatory balanced budgets and better coordination of economic policy, the leaders of France and Germany said Tuesday, pushing for long-term political solutions instead of immediate financial measures like a single European bond. French President Nicolas Sarkozy and German Chancellor Angela Merkel also pledged to harmonize their countries’ corporate taxes in a move aimed at showing the eurozone’s largest members are “marching in lockstep” to protect the euro. Both leaders stressed their commitment to defending the common currency, a cornerstone of integration on this long-fractured continent. They presented their proposals … Read more

Euro zone bond debate raises pressure on Merkel

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(Reuters) – One of Germany’s leading economic associations came out in favor of joint euro zonebond issuance on Monday, raising pressure on Chancellor Angela Merkel to consider bolder crisis steps ahead of a meeting with the French president. Until now, the idea of so-called “Eurobonds” has been fiercely opposed by Berlin, which is fearful such a step would push up German borrowing costs and reduce incentives for weaker euro zone members like Greeceto reform their economies. A German government spokesman was emphatic — Merkel and France’s Nicolas Sarkozy will not discuss common euro zone issuance in Paris on Tuesday because Berlin does … Read more