11.26.2008

Merkel under pressure to be bold as economy sinks


Do you think it might have something to do with this guy? Hmm? Maybe just a little? - Ed.

BERLIN, Nov 25 (Reuters) - German Chancellor Angela Merkel's consensus-seeking governing style has helped hold an unwieldy coalition together, but her cautious approach to the economic crisis is beginning to raise concerns in her party and abroad.
Since turmoil shook markets and the global financial sector in mid-September, Merkel's government has favoured a wait-and-see approach over aggressive intervention -- first with German banks and now with the broader economy. [Dragging her feet at the instruction of 41? - Ed.]
She was forced to reverse course on the banks last month, agreeing belatedly to a 500 billion euro ($643.7 billion) rescue package after initially ruling out sector-wide aid.
Now she is under pressure to do more for an economy which sank into recession in the third quarter and risks posting its biggest contraction next year since World War Two.

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For more information on the background between Merkel and Bush 41, see Christopher Story.