Word: merkel
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...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 finance...
...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...
...help that Merkel's hands are likely to be less tied in a coalition with the economically liberal Free Democrats than they were with the Social Democrats - a change that could push Germany closer to the French line on nuclear power and relations with Russia. But what isn't yet known is how warmly the Free Democrats will embrace closer cooperation with France. They won 14.6% of the vote, a record result for the party, and their leader, Guido Westerwelle, is likely to become the next Foreign Minister. His campaign focused on how to revive Germany's economy...
...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...
...last time there was a push for deeper integration, it came from the German side, in the form of a 1994 paper authored by Wolfgang Schäuble, a close confidant of then Chancellor Kohl, and Karl Lamers, then foreign-affairs spokesman for Merkel's Christian Democratic Union. They outlined a new "core" Europe in which France and Germany would make up the inner "core of the core." The French never formally replied to that proposal. That was "a mistake," says Jean-Pierre Jouyet, the former French Minister for European Affairs who now heads the national stock-market regulatory agency...