Berlin (AP) - German Chancellor Angela Merkel has repeatedly insisted that: "if the euro fails, Europe will fail."
Crisis in 17 countries that use the euro, Spain recognized the need to help save the banks and the Greek voters to decide whether to back up the single currency, you can pull back to a boil. And all eyes are to see it will do to save the collapse of the EU economic power in Germany.
Undeniably Merkel's commitment to work together to maintain a common currency. However, this does not mean she is ready to take politically difficult, many people say is needed to save the day measures. She seems to free up funds to save the dream of a wider Europe, wandering among the narrow power base pressure at home from her.
Which way she turned the key to the future of Europe - and the fate of the global economy.
The two leaders or undermine the common currency has highlighted the crucial moment in the financial crisis.
- As Europe's largest budget hawk, Merkel last year with former French President Nicolas Sarkozy of a strict fiscal rules to government-held too much debt too much confusion cover architect.
- But she also has a pragmatic side. It is worth noting that she has signed a rescue package initially resist flexibility - with the first bailout, Greece began in the mid-2010.
Of course, this is Germany's economic interests, to ensure the future of the euro. $ 27.6 billion euros (about $ 34.6 billion) of exports in the first quarter of this year, Germany's nearly 110 million euro to other euro area countries. The full EU-27 accounted for more than half of exports. Germany urgently needs a stable market, close to home.
It is also clear that Europe needs Germany ? 2.6 trillion national GDP than 30% of France's second-largest euro-zone economy, it means that the German capital to save the troubled EU.
Still no threat of immediate disaster, Merkel has moved from her insistence, attaching conditions to help budging indication, this frugality is a basic virtue, there is no magic wand to save the euro. Pressure from leaders in Camp David, the leading economic countries in the recently held G-8 Summit, Merkel cut to ward off a lonely figure, ditch crunch and jump start growth.
She insisted that her tough Thursday in a speech to Parliament, the G-20 summit this weekend in Mexico.
"We can only overcome the crisis," she said, "When we are faced with its roots: the huge debt levels in some Member States, lack of competitiveness."
When the global financial crisis first erupted in 2008, Merkel famous invoke the "Swabian housewife" - Germany's prudent housework in the southwest of the country area named after the traditional personification.
"She told us a worldly wisdom," Merkel said: "You can not live in the top of the means for a long time." Image stuck.
The investigation has been Angela Merkel in Germany, the most popular politician in the top of the list or close to. Her hard-line stance of the crisis, there are a lot of work to do, universal.
Merkel's request saddle Greece's tough austerity measures as part of two of its multibillion-euro bailout plan, such as reductions in public sector wages and pensions. German saw it as the years of splurging, just desserts, they have been for their own financial.
Spending cuts have left the Greek economy into a deep recession. Greek seemingly endless pain, anger, turned away last month the two traditional political parties in the election. Rather than the more radical party has vowed to pull out the relief and tighten agreements with them to vote. This weekend, Greece is facing another election. If it's back up a radical left-wing political party committed to the terms of the ditch rescue, it is difficult to see Merkel Greek aid funds to maintain liquidity.
This may lead to a Greek default, forcing it out of the euro, a move that could undermine the entire global financial system into unknown territory.
Held in Germany in a small shaking threat. A Fook Sing the survey found that 62% of the German hope that Merkel, her hard-line, and adhere to Greece announced last week. They withdraw from the common currency in favor of the 39 - 49 percent - from the Greek.
"I think her commitment to live in order to maintain the euro is strong, but I think this is not to maintain a strong Greece (IT)," said Carsten Brzeski, senior economist of ING Group in Brussels. "They want to keep Greece, but if Greece went to the election results, then so be it."
The fact is that the direct impact of the Greek exports to the German economy will be small. Germany's first quarter exports to Greece only amount to be sold in Europe as a whole, a small portion of 120 million euros. Brzeski think are at greater risk: will have lost billions of euros in Germany, secured loans, Greece and other troubled countries of high-risk rescue, such as Spain and Italy, Greece pulled out the probability of both likely to decline, and and Germany.
Faced with growing criticism of Merkel at home and abroad too much emphasis on austerity, especially long-term partner for her in the fight against the economic crisis: the French, including a new socialist president. Hollande has quickly become the promotional measures to one of the strongest voice in the European countries to stimulate economic growth among the leaders.
One of these measures, the debt has been jointly issued by the European bond "- can be used to fund any potential to eventually replace the debt of individual countries. European bond to protect the weaker countries, they now face in the bond market to raise funds, and their high interest rates, they are insulated. Those high interest rates is the ground zero of the crisis: They have forced Greece, Ireland and Portugal to seek relief.
In the face of such pressure, Merkel has shown her other notable features: a pragmatic signs. She has recently begun to soften her tone, and promote economic growth, suggesting that she is because it means that as long as willing to do more and deeper European integration, long-term.
There is a possibility that she will make further concessions. - Requires pro-growth measures have begun to Germany before the election next year, the center-left opposition - from Merkel she cherishes the support of the European financial agreement was approved by Parliament.
Merkel's Union has recently proposed to lend funds to increase the European Investment Bank, development banks, public money of the project, more efficient use of existing EU funds and the implementation of structural reforms to promote economic growth - but no more stimulus money.
The concession is not very possible, including the European bond any time soon. Merkel's center-right coalition, unloved other rich countries, political toxic and may have trouble, Germany's highest court, which guard the parliament for the German budget control.
Feasible, may be the so-called debt, and the line made by the independent economic advisory panel of the German government in November last year redemption. Will see a country's gross domestic product of more than 60 percent of the debt transferred to the joint and several liability of a common redemption. They will have to pay them more than 20-25 years, there will be pledged in foreign exchange or gold reserves as part of the safe.
Germany opposed the idea of ??backup. Merkel's spokesman Steffen Seibert said last week that "significant constitutional and legal issues need to be discussed.
Angela Merkel warned against expectations of a revolutionary "design" from the EU leaders summit at the end of this month.
She cautioned the Europeans on Thursday against Germany's economic strength depends on too many.
"Germany's strength is not infinite," she said Thursday, a Berlin-led rescue plan is expected to further combat.
Instead, she made it clear that she still plays a long game, and how to run its economy by strengthening the Government's centralized control of the euro area. This will provide a quick fix of hope, because they go to vote in Greek a little comfort.
"What we need is not just a monetary union, we also need a so-called fiscal union, the more common budgetary policy, we must first and foremost a political alliance," she said. "This means that as things move forward, step by step, we must give up power, as well as Europe."


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