Pressure on Merkel spells trouble for UK

And it’s hardly surprising.


Her conservative-liberal coalition was trounced in key regional elections on Sunday amid rising anger over the deal that will cost her country £19 billion.

The result stripped her government of its majority in the country’s Bundesrat, or senate, and her ability to pass reforms cutting public spending.

Yesterday (MON), Mrs Merkel was forced to admit her government would have to abandon planned tax cuts because of Germany’s payout to Greece and a new commitment to help other struggling euro zone countries as part of an EU bail-out agreed in Brussels yesterday.

"We’ve suffered a stinging defeat, there’s no way around it," she said. "Tax cuts won’t be possible for the foreseeable future. We see that in the debate about the euro, about the guarantees and much else."

Germany’s opposition Social Democrats yesterday vowed to use the chancellor’s new weakness to disrupt her government’s plans to reform health care and taxes.

Frank-Walter Steinmeier, the Social Democrat leader, threatened to link new legislation to commit German financing to a euro bail-out with left-wing demands to increase taxation.

And we may not be in the Euro, but we’re still yoked to Germany, which has fallen into the hands of the lunatics:

In a development that threatens the City of London with extra regulation, Mr Steinmeier demanded tough European laws against "speculators" and for tough regulation of financial markets as the price for opposition support.

He told that his party is not against rescuing troubled euro zone countries but will insist on "instruments" to punish the financial institutions the German left blames for crisis.

"It is those who don’t do anything to regulate the financial markets and the costs of the crisis who fail on Europe," Mr Steinmeier said.

And the Lisbon treaty has provided the tools to allow this to happen.

As they say on Twitter, #thankyouGordon


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