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Edition: U.S. Article Comments (0) Email Print Reprints Full Focus Editor's choice A selection of our best photos from the past 24 hours. Full Article Read Pilots and passengers rail at new airport patdowns 11 Nov 2010 Harry Potter star Watson "felt sick" when told of riches 08 Nov 2010 Respite for Ireland, euro after sharp selloff 10:33am EST Analysis: German tempers fray as U.S. policy gulf widens 10 Nov 2010 China's SAIC close to GM IPO stake buy-sources 10 Nov 2010 Discussed 100 Pilots and passengers rail at new airport patdowns 97 Analysis: German tempers fray as U.S. policy gulf widens 76 GLOBAL ECONOMY-Obama returns fire after China slams Fed’s move Watched Bejeweled bra exposed in NY Thu, Oct 21 2010 Japanese Tourism Bra Wed, Nov 10 2010 Scientists re-create big bang Tue, Nov 9 2010 Special Report: The two lives of Angela Merkel Tweet This Share on LinkedIn Share on Facebook By Andreas Rinke and Stephen Brown BERLIN (Reuters) - German conservative party headquarters is rocking. To the heavy thud of AC/DC, hundreds of young party members throng the foyer of Konrad Adenauer House in Berlin waving posters and talking over... Factbox Key dates in Angela Merkel's political calendar 6:58am EST Related Topics World » Russia » United Nations » Italy » Germany's Chancellor Angela Merkel arrives for the opening plenary session of the G20 Summit in Seoul November 12, 2010. Credit: Reuters/Michel Euler/Pool By Andreas Rinke and Stephen Brown BERLIN | Fri Nov 12, 2010 6:59am EST BERLIN (Reuters) - German conservative party headquarters is rocking. To the heavy thud of AC/DC, hundreds of young party members throng the foyer of Konrad Adenauer House in Berlin waving posters and talking over the music. Music over, they listen with rapt attention and regular applause to Germany's most popular politician -- approval rating a record 74 percent -- speak about passion and leadership. With Germany taking on a more assured and outspoken role in Europe, its economy moving into what the economy minister has called an "XL recovery", and no national elections to worry about for three years, there's every reason for Angela Merkel's government to bask in the glow of success. Unfortunately for the German chancellor, neither she nor her Christian Democratic Party (CDU) is the object of the chants and adulation at this rally of young conservatives on a Saturday afternoon in October. Instead, the calls -- "KT! KT! KT!" -- refer to Merkel's debonair 38-year-old defense minister from the CDU's smaller, more conservative Bavarian sister party, the Christian Social Union (CSU). "KT" is Karl-Theodor zu Guttenberg -- or to give him his full dues, Karl Theodor Maria Nikolaus Johann Jacob Philipp Franz Joseph Sylvester, Baron von und zu Guttenberg. Pictures of Guttenberg and his wife Stephanie, the great-great-granddaughter of the "Iron Chancellor" Otto von Bismarck -- architect of German unification in the 19th century -- frequently decorate the covers of newspapers and magazines. It may surprise many, especially those outside Germany, that the young noble is even considered a serious rival to the woman widely known as the new Iron Chancellor. But with the ruling coalition struggling in the polls, and some party insiders accusing her of weak leadership and a lack of enthusiasm, Merkel is beginning to look like a politician fighting for survival. In a Forsa survey in mid-October, 23 percent of respondents said Guttenberg would make a better chancellor than Merkel, with just 14 percent preferring the incumbent. More strikingly, nearly half the Germans polled saw no difference between the two leaders' abilities -- something of an insult to the 56-year-old chancellor, re-elected just a year ago and in the front line of German politics for almost two decades. Guttenberg, who entered parliament just eight years ago, may turn out to be a flash in the pan. But his rise does highlight a contradiction about Angela Merkel: after five years as the most powerful person in Germany, her star seems to be waning at home even as it rises abroad. "There seem to be two Merkels -- one abroad, one at home," says Eberhard Sandschneider, research chief for the DGAP foreign policy think-tank. "It is a pattern in German politics and is similar to what her predecessors Helmut Schmidt and Helmut Kohl experienced." IRON CHANCELLOR OF EUROPE In person, Merkel comes across as a supremely confident politician of growing global stature. Unemployment is at an 18-year low and Germany, unlike historic rivals France and Britain, has avoided the drastic austerity measures that have filled French streets with protesters and will chop almost half a million public-sector jobs in Britain. The economy, motoring along at 2.2 percent growth, looks likely to expand steadily from now until her second term ends in 2013. Germany's growing assertiveness on the international stage has just been cemented by a new two-year turn on the United Nations Security Council. Merkel can also draw confidence from the fact that almost all her former internal rivals for leadership of the CDU have left politics. Younger ministers call her "Mutti" (Mum) with a mixture of respect and fondness. Guttenberg might impress with his easy style, but Merkel exudes experience, learnt from surviving in two different ideological systems and through crucial posts like environment minister in the 1990s and, since the 1998 defeat of her mentor Helmut Kohl, at the helm of the CDU. If Kohl taught Merkel anything, it was to focus on the end result. Visitors to Merkel's office on the 7th floor of the "Washing Machine", as the startling modern chancellery with its huge round windows is nicknamed, are immediately struck by her ambition. One clue, standing on a shelf behind her desk, is a small portrait of Catherine the Great, the German-born Russian empress with whom she seems to share a vision of transforming her country. "I want to ensure that in 2050 Germany and Europe are still taken seriously by the world, not just considered sanctuaries to the arts and beautiful old things," Merkel told Reuters when asked to define her ambitions. As the leader of Europe's biggest economy, Merkel is convinced Europe must integrate further if the old continent wants to retain influence. She denies the idea -- popular in some parts of Europe over the past couple of years -- that Germany's new willingness to push its opinion means it is moving away from the continent. Under her leadership, Germany helped push through the Lisbon Treaty which now underpins the Union, lobbied for a common foreign service and is now even happy to talk about closer coordination of economic and fiscal policy. Not surprisingly, Merkel often plays the role of "European chancellor" at summits of the bloc's 27 member states. "When she talks, it goes quiet in the room, everyone else listens," said one head of government after the last EU summit in Brussels. Austrian Chancellor Werner Faymann, a Social Democrat, admires that power, telling Reuters: "She is nearly always involved in finding a compromise." In May this year, after nerve-wracking negotiations between euro zone members as Greece teetered on the edge of default, Merkel acceded to a multi-billion rescue package for the euro -- but only after the rest of the zone agreed to her demands for, among other things, IMF involvement. Last month, Merkel and President Nicolas Sarkozy took their EU partners by surprise by announcing, from the chic Normandy resort of Deauville, a compromise on EU budget rules even as the bloc's finance ministers met in Luxembourg on the same subject. At the EU summit at the end of October they secured the treaty change needed to avoid challenge in Germany's constitutional court. EMOTIONAL INTELLIGENCE But reviews are mixed. "Merkel is not only a good leader of Germany, but also a very good leader for the whole of Europe," trills the visiting prime minister of Estonia, Andrus Ansip. Others are less enthusiastic about Germany's increased willingness to make decisions on behalf of Europe -- a role that was unthinkable for decades given Germany's part in 20th century history. Even Luxembourg's Prime Minister Jean-Claude Juncker, normally a fan of close Franco-German coordination, was critical of the way Merkel and Sarkozy railroaded EU policy at Deauville, saying such conduct was "simply impossible". Berlin and Paris shrug it off, observing that the EU complains when they don't get along and when they do. "If Merkel and Sarkozy are together, it is a pretty powerful pair," said France's minister of foreign affairs, Pierre Lellouche on a visit to Berlin. 1 2 3 Next World Russia United Nations Italy Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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