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...that any solution is in the offing immediately, even after 11 hours of talks in Berlin. German participants said the U.S. government and GM appeared to be stalling. For weeks, talks have focused on a German government-backed credit for Opel of €1.5 billion ($2.1 billion). But German officials said the U.S. surprised them on Wednesday with a new demand for an additional short-term credit of €300 million ($416 million). The U.S. government also rejected the German government's plan to impose itself as a kind of administrator over Opel's management. After the meeting, the Germans...

Author: /time Magazine | Title: Rescuing GM in Europe: A Political Hot Potato | 5/28/2009 | See Source »

...Knowing that Merkel is under pressure because she has made saving Opel a key campaign issue, GM could be using the threat of insolvency to pressure Berlin into providing more aid. Merkel and her political rivals, the Social Democrats, have come too far down this road to back out now, some German commentators have suggested, exposing the government to high-pressure tactics from...

Author: /time Magazine | Title: Rescuing GM in Europe: A Political Hot Potato | 5/28/2009 | See Source »

...Austrian-Canadian Magna group and Italy's Fiat SpA remain the strongest bidders for Opel. Under pressure from trade unions and key leaders of German states where Opel operates, Berlin has appeared thus far to favor the plan presented by the Austrian billionaire Frank Stronach, whose Magna group is a major worldwide supplier of components to GM. Stronach has teamed up with Russian carmaker OAO GAZ Group and the state-controlled Russian financial group OAO Sberbank. Russian Prime Minister Vladimir Putin has been lobbying Merkel to support the Magna bid. Stronach told reporters on the sidelines of Wednesday's meeting...

Author: /time Magazine | Title: Rescuing GM in Europe: A Political Hot Potato | 5/28/2009 | See Source »

...travel market between the two capitals. Opened in 2007, a high-speed rail link between Madrid and Barcelona that cut intercity travel time to 21⁄2 hours has grabbed 50% of that market. Similar effects have been seen in Paris-Lyon, Paris-Brussels and Hamburg-Berlin transport links, where domination by fast trains has led airlines to reduce or drop services altogether. "When travel time is two hours or less, high-speed rail wins 90% market share [against] airplanes," says SNCF's Faugère. "It's little wonder airlines like Air France are considering starting their own high...

Author: /time Magazine | Title: European Train Travel: Working on the Railroad | 5/28/2009 | See Source »

When Benno Ohnesorg was shot on June 2, 1967, by a policeman in West Berlin during a demonstration against the Shah of Iran, the young German student became a martyr for a generation of left-wing activists. The killing triggered the radicalization of the mass protest movement in West Germany, which directed its anger against the police, the government and the conservative establishment. The poignant image of a woman cradling Ohnesorg's head as he lay dying on the ground became etched in Germans' minds. But now it has emerged that the police officer who pulled the trigger was actually...

Author: /time Magazine | Title: German Policeman Unmasked as Stasi Spy | 5/28/2009 | See Source »

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