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...banks pull back is a critical issue that still needs to be coordinated. One of the risks is that inflation could soar due to the explosion of national debt in many countries during the crisis. And early signs suggest governments have wildly different strategies. In Germany, for example, Chancellor Angela Merkel promised tough action to bring down the budget deficit, while in France, President Nicolas Sarkozy is looking to add to the country's debt though a huge government-bond issue next year. Such divergences are already causing alarm. Unless exit strategies also address the long-term sustainability of public...

Author: /time Magazine | Title: Braking the Banks | 9/28/2009 | See Source »

...polite posturing of Germany's election campaign captures the mood in most European capitals at the moment. Both Chancellor Angela Merkel's center-right Christian Democrats and the center-left Social Democrats of Frank-Walter Steinmeier remain committed to Berlin's 4,000-strong troop deployment in Afghanistan as part of the multinational force there. But Die Linke, a smaller, left-wing party, has won support by campaigning on an immediate withdrawal, and as public support for the Afghanistan mission falls even the mainstream leaders are having to take notice. Steinmeier has recently hinted that he would pull troops...

Author: /time Magazine | Title: Afghanistan: Looking For the Way Ahead | 9/28/2009 | See Source »

German Chancellor Angela Merkel won over German voters in a federal election on Sept. 27. Can she now be won over by a French charm offensive aimed at repairing the relationship that was once at the heart of Europe? That's the question being asked in Paris, where top government officials are openly talking about their desire to rekindle closer ties with their neighbors across the Rhine. Since the end of World War II the Franco-German relationship has been the motor of European integration, the driving force behind the creation of the European Union and, more recently, the introduction...

Author: /time Magazine | Title: Can France and Germany Fall in Love Again? | 9/26/2009 | See Source »

...plans to spend his way out of the crisis with a new gigantic government-bond issue. Still, when it comes to Germany's relationship with France, Joannin of the Robert Schumann Foundation points out that the Chancellery rather than the Foreign Ministry usually calls the shots. (Read: "Guido Westerwelle: Angela Merkel's Unlikely Partner...

Author: /time Magazine | Title: Can France and Germany Fall in Love Again? | 9/26/2009 | See Source »

...leaders," tough new sanctions would be applied. Brown called the new development the greatest challenge facing the international community. But Germany, which has recently shown reticence to expand sanctions without approval from the entire European Union, was inexplicably absent from the event. Obama was left to explain that Chancellor Angela Merkel had a more pressing engagement. More important, after hinting in recent days that Russia might be willing to support broader sanctions against Iran, Russian President Dmitri Medvedev was absent from the rostrum, as was Chinese leader Hu Jintao. Both men are present in Pittsburgh for the G-20. Statements...

Author: /time Magazine | Title: Ahmadinejad Rejects Obama's Nuclear Warning | 9/25/2009 | See Source »

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